Image Source : China Visual
BEIJING, August 19 (TMTPOST) -- China's e-commerce firm GigaCloud Technology Inc（GCT）, known as the "first overseas-listed B2B large item merchandise platform," made its debut on the Nasdaq Thursday and its share price quickly skyrocketed.
GigaCloud's issue price was $12.25 per share, the high end of its price range. The company raised more than $30 million in total.
On the day of the IPO, the company's share price skyrocketed over 50% from the opening price, with a maximum offer of $21.22 per share, and fell after an intraday high. The company closed at $15.69 per share, up 28.08% from the opening price, with a total market capitalization of $624 million.
Founded in 2006, GigaCloud provides an online business-to-business (B2B) marketplace for large goods and products, such as furniture, fitness equipment and home appliances.
It took 42 days for GigaCloud to go from filing a form on July 8 to getting listed. It filed with the U.S. Securities and Exchange Commission (SEC) in May 2021, but stalled afterwards. In its prospectus, GigaCloud stated that it had received approval from local authorities and the China Cybersecurity Review Technology and Certification Center (CCRC) prior to its listing and was not required to undergo a cybersecurity review by the Cyberspace Administration of China. That is because the company's e-commerce platform is operated by a Hong Kong subsidiary with less than 1 million users. As a B2B e-commerce platform, it collects limited buyer and seller data and does not involve personal information.
Due to frequent pauses of offline trade due to the pandemic and the shift to online procurement of large items, sales on the GigaCloud Marketplace platform have grown rapidly in the past two years. From 2019 to 2021, the gross merchandise value（GMV）of the GigaCloud Marketplace platform was $3,550, $191 million and $414.2 million, respectively, surging 437% in 2020 and 117% in 2021 year on year.
