IPO Update: Intelligent Living Application Group Proposes IPO Plan

Summary

  • Intelligent Living Application Group has filed to raise $20 million in a U.S. IPO.
  • The firm sells mechanical locksets and electronic security devices.
  • ILAG has produced contracting revenue and the IPO looks expensive, so I'll pass on it.
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Quick Take

Intelligent Living Application Group (NASDAQ:ILAG) has filed to raise $20 million from the sale of its common stock in an IPO, according to an amended registration statement.

The company sells mechanical locksets primarily in the United States and Canada.

ILAG is focusing on its existing, slow growing business, its financial results have been poor and it is seeking a comparatively high IPO valuation, so I'll watch the IPO from the sidelines.

Company & Technology

Hong Kong, China-based Intelligent Living was founded to design, manufacture and sell mechanical locksets for indoors and outdoors as well as smart locks for the connected home market.

Management is headed by Chairman and CEO Mr. Bong Lau, who has more than 20 years' experience in the door security hardware industry.

The company sells its products to major retailers as well as property developers and hotel/service apartment developers.

The firm began work on its smart locks initiative several years ago but has since focused its resources on its core business due to the trade conflict between the U.S. and China and more recently the effects of the Covid-19 pandemic.

Currently, 98% of the firm's revenue is from sales to the U.S. market.

Intelligent Living has received at least $4.2 million from investors including senior management.

Market & Competition

According to a 2020 market research report by Zion Market Research, the global market for mechanical locks is expected to exceed $9 billion in annual turnover by 2026.

This represents a forecast CAGR of 5.1% from 2020 to 2026.

The main drivers for this expected growth are increasing security concerns among consumers and the portable natures of mechanical locks.

Also, the Asia Pacific region is expected to account for the highest market share by 2026 owing to continued residential development at large scale in countries such as

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This article was written by

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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