ICZOOM Group Inc. (IZM) Plans to Raise $7 Million in March 15th IPO

ICZOOM Group Inc. (IZM) is planning to raise $7 million in an initial public offering on Wednesday, March 15th, IPO Scoop reports. The company will be issuing 1,500,000 shares at a price of $4.00-$5.00 per share.

In the last year, ICZOOM Group Inc. generated $290.4 million in revenue and $2.6 million in net income. The company has a market cap of $29.2 million.

ICZOOM Group Inc. provided the following description of their company for its IPO: “(Note: ICZoom completed a reverse stock split on a 1-for-2 ratio on Aug. 8, 2022.) We are primarily engaged in sales of electronic component products to customers in Hong Kong and the People’s Republic of China (PRC). These products are primarily used by China-based SMEs (small and medium-sized enterprises) in the consumer electronics industry, the Internet of Things (“IoT”), automotive electronics and industry control segments. In addition to sales of electronic component products, we also provide services to customers such as temporary warehousing, logistics and shipping, and customs clearance, and charge them additional service commission fees. We sell two categories of electronic component products: (i) semiconductor products and (ii) electronic equipment, tools and other products. Our semiconductor products primarily include various integrated circuit, discretes, passive components and optoelectronics, and our equipment, tools and other electronic component products primarily include various electromechanical, maintenance, repair & operations (“MRO”), and various design tools. Note: We are not a Chinese operating company, but a holding company incorporated in the Cayman Islands with all of our operations conducted by our wholly owned subsidiaries established in the People’s Republic of China (“PRC” or “China”) and Hong Kong. See “Risk Factor — Risks Related to Doing Business in China” starting on page 52 of this prospectus and “Risk Factor — Risks Related to Our Corporate Structure” starting on page 50 of this prospectus. Historically we had a series of contractual arrangements with Shenzhen Pai Ming Electronics Co., Ltd., a PRC company which functioned as a variable interest entity and is referred to as “the VIE” or “Pai Ming Shenzhen” in this prospectus. The VIE structure provided contractual exposure to foreign investment in the VIE rather than replicating an investment and the main contribution of the VIE was to hold an ICP license as the PRC law prohibits direct foreign investment in internet-based businesses, such as provision of internet information services platform and other value-added telecommunication services. We generated more than 96.5% of our revenue from operations of our wholly foreign owned entity (“WFOE”), Components Zone (Shenzhen) Development Limited (“ICZOOM WFOE”) and its subsidiaries and our Hong Kong subsidiaries for the last two fiscal years and the most recent fiscal semi year. In December 2021, we terminated the agreements under the VIE structure and our Hong Kong subsidiary Iczoom Electronics Limited, or ICZOOM HK, now operates our B2B online platform www.iczoomex.com, which does not require an ICP license under the PRC law. As a result, though we consolidated the financial results of the VIE for the last two fiscal years as a primary beneficial under the U.S. GAAP, we will no longer consolidate the operation and financial results of Pai Ming Shenzhen. As of the date of this prospectus, the agreements under the contractual arrangements have not been tested in any court of law.  **Note: For the fiscal year that ended June 30, 2022, our revenue was $290.38 million and our net income was $2.57 million. (These figures are in the chart below.) **Note: For the fiscal year ended June 30, 2021, our revenue was $279.36 million, and our net income was $2.63 million. **Note: For the 12 months that ended Dec. 31, 2021, our revenue was $292.22 million, and our net income was $1.72 million. (Note: ICZoom Group updated its financial statements with its results for Fiscal Year 2022, which ended June 30, 2022, in an F-1/A filing dated Dec. 2, 2022.) (Note: ICZoom Group cut its IPO in half to 1.5 million shares – down from 3.0 million shares – and kept the price range at $4.00 to $5.00  – to raise $6.75 million, in an F-1/A filing dated Feb. 2, 2023.) (Background: ICZoom Group cut its IPO to 3.0 million shares, down from 4.4 million shares, and reduced the price range to $4.00 to $5.00, down from $5.00 to $6.00, in an F-1/A filing dated Sept. 9, 2022. Estimated IPO proceeds under the new terms are $13.5 million – down 43.8 percent from the previous estimate of $24 million. The company also changed underwriters in its Sept. 9, 2022, filing, by naming The Benchmark Company LLC as its sole book-runner; the previous underwriters were Prime Number Capital and Shengang Securities. ICZoom Group Inc. filed an F-1/A dated June 21, 2022, with updated financial statements for the six months that ended Dec. 31, 2021. Previously: ICZoom Group Inc. filed its F-1 on Aug. 23, 2021. ICZoom’s original terms were set in its F-1/A filing on Sept. 17, 2021: 4.4 million shares at $5.00 to $6.00 to raise $24 million. ICZoom Group Inc. had filed confidential IPO paperwork with th SEC on April 1, 2021.) “.

ICZOOM Group Inc. was founded in 2012 and has 105 employees. The company is located at Room 3801, Building A, Sunhope e·METRO, No. 7018 Cai Tian Road Futian District, Shenzhen Guangdong, China, 518000 and can be reached via phone at 86 755 86036281 or on the web at http://www.iczoomex.com/.