FGI Industries Ltd IPO: What does kitchen & bath firm’s FGI stock cost?

Highlights

• FGI Industries supplies kitchen and bath products globally.

• The FGI Industries IPO’s expected date is January 13.

• For the nine months ended September 30, 2021, its revenue was US$129.7 million and the net income for the same period was US$6.9 million in 2021.

FGI Industries is a global supplier of kitchen and bath products. The East Hanover, New Jersey-based company is bringing its initial public offering and the expected IPO date is January 13. 

It plans to get listed on the Nasdaq Capital Market with the ticker symbol ‘FGI’. The stock price range for the IPO is from US$6.00 to US$8.00.

There are 2.5 million ordinary shares on offer and an additional 375,000 shares for underwriters to purchase by exercising their option.

Assuming the initial public offering is priced at the mid-point of the price range, the total proceeds before expenses would be US$18,716,250, considering underwriters exercise their option in full. 

After the offering, 9.5 million ordinary shares will be outstanding where FGI affiliates and insiders will hold 74% and public investors will hold the remaining 26% of shares.  

The Benchmark Company and Northland Securities Inc. are appointed as the book-runners for the IPO.

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The company is currently focused on sanitaryware including sinks, pedestals and toilet seats, bath furniture such as mirrors and cabinets, and shower systems, customer kitchen cabinetry, and other accessory items. The company sells its products through mass retail centers, online retailers, specialty stores, wholesale distributors, and commercial distributors.

FGI reported having 130 employees as of December 31, 2021. The company first applied for registration on September 10, 2021, via Form S-1.

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Financials:

For the nine months ended September 30, 2021, its revenue was US$129.7 million compared to US$99.3 million in the comparable period in 2020.

The net income for the same period was US$6.9 million in 2021 versus US$4.0 million in 2020.

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Its operating margin was 5.5% for nine months in 2021 compared to 5.1% in the same period in 2020. 

The revenue for the fiscal year ended December 31, 2020, was US$134.8 million, around a 7% increase YoY compared to the revenue of US$126.3 million for the fiscal year ended December 31, 2019. The net income was US$4.7 million and US$1.6 million for FY 2020 and FY 2019, respectively.

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Bottom line

There were approximately 400 IPOs in 2021. This year started with the maintained craze towards new listings starting from the first week of the year.

Amid the volatility that exists in the market, an investor must factor in all the external factors too besides analyzing the fundamentals of the company.