Source: Beast Finance Author: Beast Finance
Beast Finance has learned that Linkage Global, a cross-border e-commerce 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 (LGCB). Linkage Global plans to pass the Nasdaq IPO. Gram's IPO issued 1.5 million shares at a proposed mid-price of US$5.00 per share and raised US$7.5 million in funds.
Company Profile
Headquartered in Tokyo, Japan, Linkage Global is a company that provides a range of online marketing and cross-border e-commerce services to companies operating in Japan, Mainland China and Hong Kong for the Southeast Asian market.
Linkage Global mainly acquires new customers through online marketing, referrals from existing customers and email marketing.
In the six months ended March 31, 2023, 71% of Linkage Global's total revenue came from its cross-border e-commerce business.
Linkage Global's management is led by Chairman and CEO Zhihua Wu, who has been with the company since its founding in 2011 and prior to that served as CEO of Tsuukanmuri Co.
As of March 31, 2023, Linkage Global has received approximately $1.6 million in investment from investors.
Industry Overview
According to the 2020 market research report of Grand View Research, the size of Japan's cross-border e-commerce market was US$2.6 billion in 2019 and is expected to reach US$5.7 billion by 2030.
This means the industry has a forecast CAGR of 7.5% from 2020 to 2030.
The figure below shows the historical and future forecast growth rate of Japan’s cross-border e-commerce market from 2015 to 2030:
Financial situation
According to the IPO prospectus, Beast Finance summarizes the financial performance of Linkage Global as follows:
(1) Total revenue: Linkage Global’s total revenue in 2021, 2022 and as of March 31, 2023 are respectively: 15,466,862 US dollars and 22,028,303 US dollars. US dollars, US$9,031,327.
(2) Gross profit (loss): Linkage Global’s gross profits in 2021, 2022 and as of March 31, 2023 are respectively: US$2,537,282, US$3,704,501, and US$1,946,099.
(3) Gross profit margin: Linkage Global’s gross profit margin in 2021, 2022 and as of March 31, 2023 are: 16.40%, 16.82%, and 21.55% respectively.
(4) Operating profit (loss): Linkage Global’s operating profits in 2021, 2022 and as of March 31, 2023 are respectively: US$881,003, US$1,409,728, and US$865,942.
(5) Comprehensive income (loss): Linkage Global’s comprehensive income in 2021, 2022 and as of March 31, 2023 are respectively: US$719,940, US$1,008,653, and US$571,178.
(6) Operating cash flow: Linkage Global’s operating cash flow in 2021, 2022 and as of March 31, 2023 are: US$1,218,197, US$1,168,928, and US$1,810,240 respectively.
As of March 31, 2023, Linkage Global had $3.5 million in cash and $6.4 million in total liabilities.
Linkage Global's free cash flow for the 12 months ended March 31, 2023 was $1.4 million.
IPO details
According to the IPO prospectus, Beast Finance compiled the IPO situation of Linkage Global as follows:
Linkage Global plans to issue 1.5 million shares at a proposed mid-price of US$5.00 per share and raise US$7.5 million through this Nasdaq IPO listing. .
No existing shareholders have expressed interest in purchasing Linkage Global shares at the IPO price.
If Linkage Global 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$101.4 million.
Regarding outstanding legal proceedings, management stated that as of the date of the F-1 filing, there were no pending legal proceedings against the company.
The company currently plans to pay no dividends in the future (although it has declared dividends in recent years) and retain any future earnings for reinvestment in the company's growth and working capital needs.
Beast Finance inquired about Linkage Global’s IPO prospectus and learned that EF Hutton is the only listed bookrunner for Linkage Global’s Nasdaq IPO listing.