Raytech Holding Ltd. (RAY) Plans to Raise $7 Million in May 13th IPO

Raytech Holding Ltd. (RAY) expects to raise $7 million in an initial public offering on the week of May 13th, IPO Scoop reports. The company plans to issue 1,500,000 shares at $4.00-$5.00 per share.

In the last 12 months, Raytech Holding Ltd. generated $5.8 million in revenue and $800,000 in net income. The company has a market-cap of $78.8 million.

Revere Securities served as the underwriter for the IPO.

Raytech Holding Ltd. provided the following description of their company for its IPO: “Raytech Holding Ltd. is a holding company incorporated in the British Virgin Islands (“BVI”). As a holding company with no material operations, Raytech Holding’s operations are conducted by its wholly owned subsidiary, Pure Beauty Manufacturing Company Limited (“Pure Beauty”), in Hong Kong, a special administrative region of the People’s Republic of China (the “PRC”). (Incorporated in the British Virgin Islands) We are not based in mainland China and do not have operations or generate revenue in mainland China, except that the manufacturers that manufacture our products are located in mainland China. We currently do not have or intend to set up any subsidiary in mainland China, and do not foresee the need to enter into any contractual arrangements with a variable interest entity (“VIE”) to establish a VIE structure in mainland China. For the fiscal years ended March 31, 2023, and March 31, 2022, we generated all our revenues from Hong Kong.  Leveraging our expertise in the personal care electrical appliance industry, we aim to promote consumer lifestyles and drive the awareness of personal grooming. Through Pure Beauty, we principally engage in the sourcing and wholesaling of personal care electrical appliances for international brand owners. We also provide product design and development collaboration as a value-added service for our customers. Our customers are brand owners of personal care electrical appliances who market and sell their personal care electrical appliances products to end consumers. Our customers include Koizumi Seiki Corp., one of the top 10 sellers in terms of retail volume in the personal care electrical appliance market in Japan as stated in “Personal Care Appliances in Japan” by Euromonitor International in December 2023. For the years ended March 31, 2023, and March 31, 2022, we generated 91.3 percent and 97.8 percent of our total revenue, respectively, from Koizumi Seiki Corp. Commencing our operation in 2013, we have accumulated over 10 years of experience in the industry. Over years of operation, we have sourced and wholesaled a wide range of personal care electrical appliances, which can be broadly classified into seven major categories: (i) hair styling series, including hair dryer, hair straightener and curling iron; (ii) trimmer series, including facial shaver, nose trimmer and eyebrow trimmer; (iii) eyelash curler; (iv) neck care series; (v) nail care series; (vi) tooling and (vii) other personal care appliance series, including body and facial brush, reset brush, callus remover, sonic   peeling, handy   fan and others. In particular, we are specialized in sourcing and wholesaling hair dryers within our hair styling series which primarily include salon-type hair protection and styling functions or compact design for travel. (See “Business – Business Overview – Product Sourcing and Wholesaling” on Page 93 of this prospectus.) Note: Net income and revenue are in U.S. dollars for the fiscal year that ended March 31, 2023. (Note: Raytech Holding Ltd. cut the size of its IPO to 1.5 million shares – down from 2.5 million shares – and kept the price range at $4.00 to $5.00 – to raise $6.75 million, according to an F-1/A filing dated Feb. 27, 2024. Background: Raytech Holding Ltd.’s first reduction in the size of its small-cap IPO came in mid-January 2024, when it cut the deal to 2.5 million shares – down from its original size of 3.0 million shares – and kept the price range at $4.00 to $5.00 – to raise $11.25 million. In November 2023, Raytech Holding Ltd. filed its S-1 and disclosed that it intended to offer 3.0 million shares at a price range of $4.00 to $5.00 to raise $13.5 million.) “.

Raytech Holding Ltd. was founded in 2013 and has 6 employees. The company is located at Unit 609, 6/F, Nan Fung Commercial Centre, No.19 Lam Lok Street, Kowloon Bay, Hong Kong and can be reached via phone at +852 2117 0236 or on the web at http://www.raytech.com.hk/.