At the midpoint of the proposed range, iPower would have an enterprise value of $272 million. IPOScoop.com, a trade website that tracks companies becoming publicly traded, said iPower is expected to begin trading May 7.
The company formed in April 2018 and will trade under the symbol of IPW. Bookrunners are investment bankers Roth Capital Partners LLC of Newport Beach, D.A. Davidson & Co. of Great Falls, Mont., and Tiger Brokers, a Beijing-based online brokerage that caters to Chinese investors.
In an April 27 filing with the federal securities regulatory agency, iPower said it booked profits of $3.3 million on sales of $66.1 million in 2020.
The company said it is one of the largest online hydroponic equipment suppliers in the U.S., selling more than 22,000 different items on its retail website, Zenhydro.com. The products are used to grow vegetables, fruits and flowers and cannabis. Orders are fulfilled from two fulfillment centers totaling about 72,000 square feet of warehouse space in Southern California.
The company sells its products through third-party distribution channels including Amazon, eBay and Walmart. Roughly 75% of iPower’s sales are generated over these three platforms, with a quarter coming from Zenhydro.com
Its private label products, marketed under the iPower and Simple Deluxe brands, include items such as heating, ventilation and air conditioning exhaust blowers, grow light systems and trimming machines.
The company, which is run by Chief Executive Chenlong Tan, said in its regulatory filing that “business prospects are difficult to predict given our limited operating history and unproven business strategy.”
iPower stated in a filing that, “should we experience a disruption in our sales on third-party platforms, or should such third-party platforms somehow come to rank us unfavorably or fail to list our products, this could negatively affect our overall sales and, thus, negatively impact our overall revenues.”
The company also warned that the global Covid-19 pandemic and workplace restrictions could hurt its business.
“Many of our suppliers are experiencing operational difficulties as a result of Covid-19, which in turn may have an adverse effect on our ability to provide products to our customers,” the filing stated. “Any disruption in our supply chain, increase in shipping costs, and the consistency and availability of our supply chain, could negatively affect our revenues and overall business strategy.”