Chinese e-commerce platform Ruhnn Holding started trading on the Nasdaq Stock Market on Wednesday.
The company, trading under the ticker symbol of "RUHN," announced its initial public offering (IPO) of 10,000,000 American depositary shares (ADSs), at 12.50 U.S. dollars per ADS, for a total offering size of approximately 125 million dollars, assuming the underwriters do not exercise their over-allotment option to purchase additional ADSs.
Each ADS represents five Class A ordinary shares of the Company.
Citigroup and UBS Investment Bank are the joint bookrunners on the deal.
Ruhnn Holding started trading at 11.50 dollars per share on Wednesday, decreasing 37.2 percent from its pricing, and closed at 7.85 dollars apiece.
Based in Hangzhou, the company is the largest internet key opinion leader (KOL) facilitator in China as measured by revenue in 2018, according to business consulting firm Frost & Sullivan.
As of Dec. 31, 2018, the company had 113 signed KOLs with an aggregate of 148.4 million fans across major social media platforms in China, according to its prospectus.
Ruhnn pioneered the commercialization of KOL ecosystem in China, by connecting influential KOLs who engage and impact their fans on the internet to its vast commercial network.
Feng Min, co-founder and chairman of Ruhnn Holding, told Xinhua that the company's publicly listed on Nasdaq marked a milestone in its development. He hoped Ruhnn's unique model of integrating social media traffic with e-commerce platform could attract more investors.
Ruhnn has two revenue streams. Revenues from its product sales through full-service model increased by 59.4 percent from fiscal year 2017 to 132.7 million U.S. dollars for fiscal year 2018, its prospectus showed. Meanwhile, revenues from its services through platform model increased by approximately 5.4 times from fiscal year 2017 to 5.1 million dollars for fiscal year 2018.
