Chinese copper producer Xinxu Copper more than doubles size of proposed $17 million US IPO
IPO Overview
Xinxu Copper Industry Technology, a Chinese producer of copper and copper alloy products, raised the proposed deal size for its upcoming IPO on Monday.
The Wuhu, China-based company now plans to raise $17 million by offering 3 million shares at a price range of $5 to $6. The company had previously filed to offer 1.5 million shares at a range of $4 to $5. At the midpoint of the revised range, Xinxu Copper Industry Technology will raise 144% more in proceeds than previously anticipated and command a market cap of $127 million.
Through its operating subsidiary Anhui Xinxu, the company primarily engages in the research and development, fabricating and processing, and sale and distribution of copper and copper alloy products. Its products include T2 red copper bars, T2 tin-plated copper bars, T2 copper rods, electrolytic copper, and aluminum bar, among others.
Xinxu Copper Industry Technology was founded in 2012 and plans to list on the Nasdaq under the symbol XXC. Craft Capital Management and R.F. Lafferty & Co. are the joint bookrunners on the deal.
About the Company
We, through Anhui Xinxu, are primarily engaged in the research and development （“R&D”）， fabricating and processing, and sales and distribution of copper and copper alloy products. Our products include, but are not limited to, T2 red copper bars, T2 tin-plated copper bars, T2 copper rods, electrolytic copper and aluminum bar. In January 2024, we adjusted our sales structure by significantly reducing the volume of copper material resales, primarily electrolytic copper. This decrease was primarily the result of a strategic adjustment in our sales focus away from lower-margin products, such as electrolytic copper and traditional copper bars, toward higher-margin products, specifically soft and hard connection copper bars, which are widely used in electric vehicle battery packs. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business — Our Products.” This realignment reflects our ongoing efforts to optimize our product mix, improve overall profitability, and focus on higher-margin products. Notwithstanding the foregoing, after such strategic adjustment, electrolytic copper is still our main product, accounting for approximately 79.90%, 93.98% and 85.90%, respectively, of our total revenues for the six months ended December 31, 2024 and the fiscal years ended June 30, 2024 and 2023.