Kopney's application for an IPO in the United States is intended to raise about $30 million

Source | Official account: capitalwatch

Kopney, which focuses on the marine communications and electronics industries, has filed for an initial public offering (IPO) in the United States to raise about $30 million.

Kopney operates in China through its VIE (Variable Interest Entity) Taizhou Kopney Communication Equipment Co., Ltd. According to the prospectus, Kopney is a professional integrator of professional program design, research and development and sales of communication equipment supporting nautical engineering, as well as program design, research and development and sales in the fields of ship communication, navigation, driving control and power distribution.

The company provides services and products related to electrical systems for marine communications. According to Kopney, "The main products and services include engineering supporting electrical systems and equipment for communications and telecommunications, integrated information management systems, marine internal communication systems, marine automation (control) systems, and navigation driving consoles and power distribution systems." ”

In the six months ended June 2021, Kopney reported revenue of $6.1 million and net profit of $1.1 million. By comparison, in the six months to June 2020, the company had revenue of $3.2 million and net profit of $326027.

As a growth strategy, Kopney said, the company plans to boost sales by enhancing training for sales professionals, increasing brand awareness through promotions, providing "satisfactory and high-quality" customer service, and better adapting to market changes.

Kopney included a disclaimer of risks associated with its VIE structure in its prospectus.

In addition, Kopney pointed out the risks associated with the Foreign Companies Accountability Act. The documents show that the company's audit firm, WWC P.C, was last inspected by the PCAOB in November 2021.

Kopney is expected to be listed on nasdaq capital markets under the ticker symbol "KPNT". Boustead Securities was the exclusive underwriter of the IPO.