Power supply manufacturer Rhea Electronics intends to go public in the United States to raise 18 million US dollars

Power Solutions Product Manufacturer Eraak Power Solution Group Inc. (Rhea Electronics) is seeking an initial public offering (IPO) in New York to raise up to $18 million.

As the holding company of the Cayman Islands, Rhea Electronics operates through Zhejiang Leia Electronics Co., Ltd., a subsidiary located in Wenzhou, Zhejiang Province. According to a prospectus filed with the SEC last Friday, the company manufactures and sells sine wave and off-grid inverters, inverters and steam generators, batteries and smart chargers, and custom-designed products.

Founded in 2009, Rhea Electronics sells its products to Japan, Europe, North America, Mexico, Australia and other markets besides China. The company holds multiple compliance marks, including T V certification, German security certification (GS MARK), and FCC certification from the U.S. Federal Communications Commission. In China, Rhea has the status of a high-tech enterprise and enjoys preferential tax treatment.

Rhea sells inverters on the international market for the majority of its sales. These inverters include "off-grid inverters, 12v inverters, and 24v inverters, all of which use pure sine wave inverters or improved sine wave inverters, ranging from 75 watts to 3000 watts, and are all compatible with solar power." ”

Leia Electronics said its growth strategy includes optimizing its product portfolio, "quality products and customer service," maintaining efficient manufacturing and cost management, strengthening key supplier relationships and working with major online stores. Among them, the company sells products on e-commerce platforms including Amazon (Nasdaq: AMZN).

In the six months ending June 2021, Rhea Electronics' revenue was $8.0111 million, up 31% year-over-year. According to the prospectus, the company's net profit doubled from the first half of 2020 to $1.4082 million.

In a disclaimer regarding China's regulatory conditions, Rhea Electronics said in its filing that it does not currently need to obtain permission from securities regulators or cyber regulators to list overseas. In addition, the company said its Texas-based audit firm, TPS Thayer, is subject to regular PCAOB inspections; therefore, there is currently no risk of not being able to conduct inspections under the HFCAA.

The company said that it intends to use the funds raised from the IPO for product research and development, international management and operation, marketing and business development, automation transformation and production workshop.

RHEA Electronics will issue 3 million shares of its common stock at a price of $4 to $6 per share. The company wants to list on nasdaq capital markets under the ticker symbol "RAYA.".

Prime Number Capital, LLC and Shengang Securities are its joint underwriters.