Trunkbow International (TBOW), a China-based provider of Mobile Value Added Solutions, priced its IPO on February 2nd, after downsizing to $5 per share, giving first-day negative return of 5.2%.
Business Overview (from prospectus)
We are an innovative mobile application enabler, offering telecom operators in the PRC application platforms on which to offer Mobile Value Added Solutions (“MVAS”) to their subscribers. We sell our technology products primarily to companies who resell them to the three large telecom operators in the PRC, enabling the telecom operators to offer their subscribers access to unique mobile applications, innovative tools, value-added services and an overall superior mobile experience. We develop and implement a range of comprehensive platform solutions for our customers that enable MVAS applications for their subscribers. As a technology enabler, our solutions may be generally classified into two categories: (i) MVAS Technology Platforms, which create a portfolio of unique mobile phone applications to enhance the mobile subscriber’s experience, and (ii) Mobile Payment Solutions, which facilitate commerce between mobile users, merchants and payment clearing systems. We provide both hardware and software solutions that are integrated into our clients’ existing IT infrastructure. We also offer additional services including technical support and system maintenance for our clients.
Offering: 4 million shares at $5 per share. Net proceeds of approximately $15 million will be used to build out mobile payment service platforms.
Lead Underwriters: Roth Capital
Net revenues increased $0.37 million, or 14.4%, from $2.54 million for the three months ended September 30, 2009 to $2.91 million for the three months ended September 30, 2010...Gross margin increased $0.37 million, or 21.4%, from $1.75 million for the three months ended September 30, 2009 to $2.12 million for the three months ended September 30, 2010...Operating expenses, including selling, general and administrative expenses and R&D increased $0.92 million, or 145.7%, from $0.63 million for the three months ended September 30, 2009 to $1.55 million for the three months ended September 30, 2010...
The market for MVAS enabling technology platform is highly competitive and fragmented. Within the MVAS Application Platform segment, our principal competitors are: Huawei and ZTE. Within the Mobile Payment System segment, our primary competitors are: UMPay, HiSun Technology, and Guangzhou SmartChina. Some of our competitors are larger and have greater financial resources and greater brand name recognition than we do and may, as a result, be better positioned to adapt to changes in the industry or the economy as a whole.
- WSJ: Trunkbow International Opens Down Slightly Post-IPO
- Bloomberg: Trunkbow IPO tumbles after pricing at low end