58 Home Rival E-Home Files for New York Listing
The provider of household services in China seeks to raise between $16 million to $28 million.
E-Home Household Service Holdings has applied to sell up to $28 million of its ordinary shares in an initial public offering in New York.
The company estimated its shares will float between $4 and $5 each on the Nasdaq Capital Market under the symbol "EJH."
Based in Fuzhou, E-Home is a rival of household services provider 58 Home, which is seeking a U.S. listing that would value the company at $2 billion. Reports surfaced recently, however, that the unicorn, an affiliate of 58.com Inc. (NYSE: WUBA), had failed to close its latest funding round and delayed its IPO amid the coronavirus concerns.
E-Home, on the other hand, decided to proceed. In a prospectus filed with the U.S. Securities and Exchange Commission on Friday, the company said it offers home appliance maintenance and housekeeping in 32 provinces in China.
For the year through June 2019, E-Home reported revenue of $51.1 million compared with $45.8 million for the preceding 12 months. Net income grew 5% year-over-year to $9.7 million, according to the filing. As of June 2019, E-Home reported 1.6 million registered members, of which 1.2 million have used its services.
The company also said, "There can be no assurance of growth in the fiscal year ending June 30, 2020 as a result of the adverse economic effect of the coronavirus."
Over the past few years, E-Home shifted from outsourcing to operating its own business, through which it provides delivery, installation, repair and maintenance of home appliances, home-moving, house cleaning, nanny, and maternity matron. It has 369 employees, it said, and is dedicated to small city and rural area markets in China.
Citing statistics from the China Household Appliances Maintenance Association, E-Home said in its filing that the income of the whole industry chain of the home appliance services will exceed 1 trillion yuan ($145.44 billion) this year.
Its future development strategy includes expanding its service offerings and geographic network, pursuing selective acquisitions, and boosting its brand recognition. Currently, E-Home said, it relies on WeChat, China's top social network, for marketing, as well as on offline means.
Joseph Stone Capital LLC is underwriting E-Home's offering in New York.