Northann Corp. (NCL), a California manufacturer and distributor of 3D-printed vinyl flooring, priced its sharply downsized IPO at $5.00 – the high end of its $3.00-to-$5.00 range – to raise $6.0 million on Wednesday night (Oct. 18, 2023). The company cut the number of shares by 60 percent – to 1.2 million shares – down from 3.0 million in the prospectus. The micro-cap IPO raised half of the $12.0 million in estimated proceeds under its original terms.
Shares of Northann closed their first day of trading at $4.60 – down 40 cents or off 8.8 percent from their $5.00 IPO price – today (Thursday, Oct. 19, 2023) on the NYSE – American Exchange. Volume was slightly over 570,000 shares. Northann shares had opened flat today at $5.00. The stock quickly slid 18 percent this morning to trade at $4.10. By around 12:50 p.m. EDT, Northann’s stock was trading at $3.99 – down 20.2 percent – on volume of 430,450 shares.
Craft Capital, Prime Number Capital and R.F. Lafferty & Co. were the joint book-runners, according to Northann’s IPO pricing announcement on Wednesday night (Oct. 18, 2023).
Northann, based in the Sacramento suburb of Elk Grove, California, makes and sells 3D-printed vinyl flooring. Northann serves customers in North America, mainly the United States and Canada, as well as in Europe and other regions, the prospectus says. Its clients include large wholesale distributors and retail customers. Founded in 2013, the company is incorporated in Nevada.
For the year that ended March 31, 2023, Northann earned net income of $0.17 million ($170,000) on revenue of $16.03 million.
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