Dream factory of lifestyle brands Onion Global Limited goes public

Rhea-AI Summary

On May 7, 2021, Onion Global Limited made its debut on the New York Stock Exchange under the ticker symbol OG, successfully offering 12.5 million American depository shares (ADSs) at a par value of 11.71 USD each, marking a remarkable increase of over 57% on its first day. Established in 2015, Onion Global partners with over 4,000 brands globally and has achieved annual revenue exceeding 3.8 billion yuan in 2020, with a net profit of over 200 million yuan, doubling profits from the previous year. IPO proceeds will fund brand development, marketing expansion, technology enhancements, and general corporate purposes.

Positive

• Successful IPO with a significant first-day increase of over 57%.
• Achieved a net profit of over 200 million yuan in 2020, doubling from 2019.
• Plans for 50% of IPO proceeds to develop private label brands and partnerships.
• Broad partnership with over 4,000 brands in 43 countries.

Negative

• None.

GUANGZHOU, China, May 9, 2021 /PRNewswire/ -- On the evening of May 7, local time in Beijing, Onion Global Limited ("Onion Global" or the "Company"), known as the first Chinese dream factory of lifestyle brands, formally went public on the New York Stock Exchange under the ticker symbol "OG", offering 12.5 million American depository shares (ADSs) at a par value up to 11.71 USD/share, achieving a maximum increase of more than 57%.

Onion Global Limited, founded in 2015, is a next-generation lifestyle brand platform that currently works with over 4,000 brands in 43 countries and regions through brand partners and serving as the brands' incubator, marketing and distribution agency in China alongside the development of private label brands. The group owns over 20 private label brands and provides next-generation lifestyle brands to consumers through its online self-operating sales channels, the engagement of KOCs (key opinion consumers), the leveraging of third party e-commerce platforms and the establishment of offline retail experience store.

The Prospectus demonstrates that since its inception in 2015, Onion Global Limited has maintained continuous and high growth in earnings. For 2020, the group booked annual revenue of over 3.8 billion yuan yielding a net profit in excess of 200 million yuan, doubling the net profit in comparison to 2019. Onion Global Limited has constantly gained market recognition for its outstanding brand management performance.

Approximately 50% of the net proceeds from the IPO will be used for the purpose for development of private label brands and brand partnerships; approximately 20% will be used for the purpose for expansion and diversification of marketing and distribution channels; approximately 15% will be used for the purpose for enhancement of technological capabilities; while approximately 15% will be used for the purpose for working capital and other general corporate purposes, including potential strategic investments and acquisitions.

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SOURCE Onion Global Limited

FAQ

What is the ticker symbol for Onion Global Limited?

Onion Global Limited trades under the ticker symbol OG.

When did Onion Global Limited go public?

Onion Global Limited went public on May 7, 2021.

How much did Onion Global Limited raise from its IPO?

Onion Global Limited offered 12.5 million American depository shares at a par value of 11.71 USD each.

What were Onion Global Limited's revenues in 2020?

In 2020, Onion Global Limited reported annual revenues of over 3.8 billion yuan.

What is the planned use of proceeds from Onion Global's IPO?

The IPO proceeds will be used for brand development, marketing expansion, technology enhancements, and general corporate purposes.