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Ecmoho, China's Largest Supplements Supplier, Files for $150 Million IPO in New

Yaning Ying 2019-10-02 00:30 AM

Shanghai-based online health and wellness retailer Ecmoho Ltd. has filed with the U.S. Securities and Exchange Commission for an initial public offering of $150 million. 

The target was an increase from the $100 million the company initially sought to raise, according to June public reports.

Ecomoho provides services in China's non-medical health and wellness market. Founded in 2011, it markets and distributes health supplements, food, mother and childcare products, personal care products and household healthcare equipment. To its brand partners, it provides services in retail, global marketing, technical, customer support and global warehousing supply chain, according to its filing.

Citing research by consultancy Frost & Sullivan, Ecmoho said it was the largest non-medical health and wellness company in China in 2018 in terms of revenue.

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(Image: Ecmoho)

"As of June 30, 2019, we sourced around 5,000 SKUs of quality health and wellness products from around 40 brand partners, including Abbott, Gerber, Perrier, Puritan's Pride and Wyeth Nutrition, and offered them to consumers through various online and offline channels," Ecmoho said. It sells products through online and offline channels, including on major e-commerce platforms, Alibaba Group's (NYSE: BABA) Tmall and JD.com Inc. (Nasdaq: JD).

For promotion, Ecmoho said it collaborates with 1,100 healthcare experts, as well as KOLs - key opinion leaders - who generate content. 

In addition to selling products from merchant partners, Ecmoho sells household healthcare equipment and traditional Chinese herbal tonics under its own brands, KGC and HST, the report said. The company also operates XG Health, a family health management platform. Launched in April 2019, XG Health sells health management plans, prepared by doctors and nutritionists, as well as health and wellness products, Ecmoho said. 

For the six months through June, Ecmoho reported revenue of $151.3 million, more than double from a year ago. Net income attributable to Ecmoho increased by 64% year-over-year to $1.8 million in the first half-year. Operating expenses were $32.9 million compared with $21.3 million in the same period of 2018.

Ecmoho said, citing Frost & Sullivan, that China's non-medical health and wellness market is expected to continue to grow at the compound annual growth rate (CAGR) of 20% between 2018 and 2023.

Ecmoho has applied to list its American depositary shares on the Nasdaq Global Market under the symbol "MOHO."

The underwriters on Ecmoho's deal are UBS Investment Bank and China International Capital Corp. Ltd. (CICC).

(Co-authored by Anna Vodopyanova)