New York, NY, June 23, 2022 (GLOBE NEWSWIRE) — Fujian Frozen Goods Online Network Technology Co., Ltd (“FG Online” or the “Company”), a Chinese online B2B frozen food distributor, plans to go public through a merger with a Special Purpose Acquisition Company (“SPAC”).
The company expects it to list on Nasdaq around the first quarter of 2023 at the earliest, with an estimated valuation of US$1 billion (equivalent to approximately 67 billion yuan).
Founded in 2015, FG Online specializes in providing frozen food, pre-made food, and supply chain services to small to medium-sized restaurants, community convenience stores, farmers’ markets, and other small business owners. food companies. The company’s business now covers more than 10 cities in China, with around 1,000 upstream suppliers and over 400,000 downstream restaurants and food business owners, serving nearly 100 million consumers per month.
In addition to the distribution network to business owners, FG Online is also actively expanding into other business areas. EasyFresh Cold Chain Logistics Co., Ltd (“YX Cold Chain”), a wholly owned subsidiary of FG Online, is a warehousing and storage management and cold chain logistics operator that provides warehousing services and third-party distribution to food and grocery delivery businesses. . Some of their notable clients include Meituan, Alibaba, Fresh Hema, Pupu Supermarket, Mengniu Diary, and Yili Group. YX Cold Chain currently has more than 10 storage centers and hundreds of transportation vehicles nationwide. In addition, Three Meals Ingredient, a brand of FG Online, is a new retail platform offering prepared meals. Three Meals Ingredient’s business strategy is to grow through a franchise model by establishing community convenience stores and a prepositioning warehouse to provide consumers with both a pick-up experience and a home delivery service. .
FG Online, YX Cold Chain and Three Meals Ingredient operate independently while creating a closed-loop business ecosystem – YX Cold Chain provides a solid logistics foundation for FG Online and Three Meals Ingredient, and FG Online and Three Meals Ingredient could serve to both business and consumer markets and drive the growth of YX Cold Chain, forming a solid foundation for China’s food logistics and convenience food industry.
FG Online has a gross margin of more than 12% for its business segment, an increase of more than 50% in 2019. The Company has received 5 funding rounds from many well-known institutional investors in China, such as Sinovation Ventures, Shunwei Capital, VisionGain Capital and Longling Capital. FG Online raised around CNY 120 million (equivalent to around US$17 million) in its latest fundraising. The company plans to build more cold chain infrastructure and strengthen its supply chain operation to achieve nationwide market penetration.
Throughout 2021, over 600 SPAC IPOs have been completed and over US$162 billion in funds have been raised, breaking all previous records. In 2020, the US stock market completed a total of 237 SPAC IPOs, raising a record US$83.3 billion.
Some well-known SPAC mergers include fast food brand “Burger King”, entertainment magazine “Playboy”, private aerospace company “Virgin Galactic” and first publicly traded company “Nikola”.
The SPAC is a special financial instrument in the US capital market, commonly referred to as “Blank-Check Companies”. SPAC is essentially a listed private equity fund. The founder first set up a company and submitted an IPO prospectus. Once the company goes public through IPO financing, it will find target companies to merge with within 12-24 months. Most SPACs will be listed on the Nasdaq or NYSE.
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