Source: Beast Finance Author: Beast Finance
Beast Finance has learned that Globavend, an e-commerce logistics solution company, has recently submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) and applied for an IPO listing on Nasdaq. The stock code is (GVH). Globavend plans to pass the Nasdaq IPO. The IPO issued 1.875 million shares at a mid-price of $4.50 per share and raised $8.4 million.
Company Profile
Globavend Holdings Limited, headquartered in Perth, Australia, is a company that aims to provide end-to-end logistics solutions such as parcel transportation, air freight agency, customs clearance, and transshipment for e-commerce platform operators or merchants in the Greater Asia Pacific (Hong Kong), Australia and New Zealand. company.
Globavend has developed a proprietary "integrated transportation solution that can already be connected to customers' own IT systems" and various transportation management systems "to facilitate effective logistics management."
Globavend's management is led by Founder, Chairman and Chief Executive Officer Mr. Wai Yiu Yau, who has been with the company since its inception in 2016 and previously held various positions at Deutsche Post E-Commerce GmbH.
As of March 31, 2023, Globavend has received $437,000 in investment from investors.
Industry overview
According to a 2023 research report by Allied Market research, the global logistics market is estimated to be US$9.8 trillion in 2022 and is expected to reach US$16.8 trillion by 2032.
This implies a forecast CAGR of 5.6% for this industry from 2023 to 2032.
The key drivers of this expected growth are increased demand from e-commerce providers, reverse logistics operations, technology-driven processes and automation.
Improvements in last-mile delivery systems and adoption of intermodal transportation systems are other factors boosting the growth of this industry.
Globavend’s main competitors in this industry include:
(1) JD Logistics (02618)
（2）GEODIS
(3)AP Moller - Maersk(AMKBY)
(4) Deutsche Post
(5) DSV, Denmark's Defudes International Freight Company
(6) United Parcel (UPS)
（7）Nippon Express Co
（8）DB Schenker
(9)Kuehne+Nagel
（10）C.H. Robinson Worldwide
(11) FedEx (FDX)
Currently, industries such as healthcare, manufacturing, trade, and transportation are “already experiencing mass adoption” in the global logistics market.
The global logistics market is also a highly fragmented market with a large number of local players.
financial situation
According to the IPO prospectus, Beast Finance compiled Globavend’s financial performance as follows:
(1) Total revenue: Globavend’s total revenue in 20121, 2022 and as of March 31, 2023 are respectively: US$13,256,080, US$24,021,196, and US$9,400,570.
(2) Gross profit (loss): Globavend's gross profits in 20121, 2022 and as of March 31, 2023 are respectively: US$984,966, US$1,405,878, and US$715,773.
(3) Gross profit margin: Globavend's gross profit margin in 20121, 2022 and as of March 31, 2023 are: 7.43%, 5.85%, and 7.61% respectively.
(4) Operating profit (loss): Globavend's gross profit margin in 20121, 2022 and as of March 31, 2023 are: US$563,785, US$817,146, and US$443,660 respectively.
(5) Comprehensive income (loss): Globavend's comprehensive income in 20121, 2022 and as of March 31, 2023 are respectively: US$564,758, US$810,227, and US$450,808.
(6) Operating cash flow: Globavend's operating cash flow in 20121, 2022 and as of March 31, 2023 are: US$875,086, US$783,045, and US$1,157,621 respectively.
As of March 31, 2023, Globavend had $1.6 million in cash and $2.1 million in total liabilities.
Globavend's free cash flow for the 12 months ended March 31, 2023 was $1.1 million.
IPO details
According to the IPO prospectus, Beast Finance compiled Globavend’s IPO situation as follows:
Globavend plans to issue 1.875 million shares at a mid-price of $4.50 per share and raise $8.4 million through the Nasdaq IPO listing.
No existing shareholders have expressed interest in purchasing Globavend shares at the IPO price.
The company will also register a resale of 1.68 million ordinary shares held by existing investors.
If these shares are sold after the IPO, the impact could be a significant decline in the company's share price.
If Globavend can successfully list on the Nasdaq IPO, excluding the impact of the underwriters' over-allotment options, the company's market value at the IPO will reach approximately US$61 million.
Globavend's current shares-to-shares ratio (excluding underwriters' over-allotments) is approximately 12.5%, and numbers below 10% are generally considered "low float" stocks and may be subject to significant price movements.
The company currently does not have an equity compensation incentive plan.
Globavend currently plans to pay no dividends and retain future earnings, if any, primarily to reinvest back into the company's growth and working capital requirements.
Agency
Beast Finance inquired about Globavend’s IPO prospectus and learned that RF Lafferty & Co was the sole underwriter of Globavend’s IPO on Nasdaq.
Boldbeast Finance is committed to enabling every unwilling young man to learn how to invest in Hong Kong and US stocks, and to experience the fun and excitement of being the shareholder of the world's largest company in the most mature and compliant market in the world. Let every young person gain freedom through Hong Kong and US stock investment with dignity and equality.