- Rhodium Enterprises, Inc.'s would launch its initial public offering (IPO) on Jan 20, 2022.
- Rhodium to offer 7,692,307 shares of its Class A common stock.
- The price range for the IPO is US$12.00 to US$4.00.
Digital asset technology company Rhodium Enterprises, Inc. would launch its initial public offering (IPO) on Jan 20, 2022. It had filed a registration statement regarding the IPO on Form S-1 with the Security and Exchange Commission (SEC) on Oct 29, 2021.
The company aims to get listed on the Nasdaq Global Select under the ticker symbol RHDM. The price range for the IPO is US$12.00 to US$4.00 per share.
Rhodium will offer 7,692,307 shares of its Class A common stock. An additional 1,153,846 shares of Class A common stock would be reserved for the underwriters on a 30-day purchase option at the offering price after deducting underwriting discounts and commissions.
It will have 56,839,846 outstanding shares of Class A common stock after the offering or 57,993,692 shares if the underwriters exercise their purchase option in full.
As per the filing, the outstanding shares of Class B common stock will be 67,500,411 after the offer. At the upper end of the price range, the company would be worth about US$1.74 billion.
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The company plans to use the proceeds from the offering to repay its borrowings, cover general corporate expenses, and build new sites.
Its book runners are B. Riley Securities and Cowen. The lead manager is Needham & Company, and D.A. Davidson & Co. and Northland Capital Markets are the co-managers.
What does Rhodium Enterprise do?
The Texas-based Rhodium Enterprises is an industrial-scale digital asset technology company engaged in mining Bitcoin using its proprietary and liquid cooling technology.
As of Dec 31, 2021, the company operated platforms with a 125-megawatt capacity to power over 33,600 miners, giving a total combined hash rate of 2.7 EH/s at the Texas site. After the IPO, it plans to develop a second site in Texas with an additional capacity of 225 MW.
The company had 50 employees as of Dec 31, 2021.
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For the nine months ended Sept 30, 2021, the company generated revenue of US$82.1 million and a net income and adjusted EBITDA of US$46.2 million and US$74.4 million, respectively.
For the nine months ended December 31, 2020, the revenue was US$5.15 million, while the net loss and the adjusted EBITDA were US$0.5 million and US$2.7 million, respectively.
The US IPO market is expected to heat up again in the second quarter of 2022 after a brief cool off following a roller-coaster ride last year. Some of the big IPOs lined up this year include Chobani Inc. and Reddit Inc. Nevertheless, investors should carefully evaluate the market before investing in stocks.