Hong Kong freight forwarding service provider Huayang Shipping (CGL.US) drastically lowered its IPO financing scale to US$7 million

The Zhitong Finance App learned that freight forwarding service provider Huayang Shipping (CGL.US) cut the proposed issuance scale of its upcoming initial public offering (IPO) last Friday. The Hong Kong-based company currently plans to raise $7 million by issuing 1.8 million shares at a price of $4 million per share. The company had previously planned to issue 3.8 million shares at the same price. Based on the revised issuance scale, the company will raise 53% less capital than previously anticipated, with a market capitalization of approximately $67 million.

Through its operating subsidiary, Huayang Shipping provides freight forwarding services. Huayang Shipping's main service areas include sea and air freight forwarding services, railway transport agents, customs declaration and customs clearance services, container and automobile transportation, cargo distribution, consolidation arrangements, large-scale freight projects and logistics services. Huayang Shipping's head office is located in Hong Kong and has opened seven branches in major domestic port cities, located in Shenzhen, Guangzhou, Xiamen, Shanghai, Ningbo, Qingdao and Beijing. The company also provides proxy logistics services.

Established in 1999, Huayang Shipping had revenue of US$38 million over a 12-month period ending March 31, 2025. The company plans to list on Nasdaq under the ticker CGL. The sole underwriter for the deal was Revere Securities.