Vietnamese e-commerce holding Society Pass files for IPO on Nasdaq

October 07, 2021 | 14:08
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Society Pass targets to raise around $17.25-22 million in gross proceeds from the initial public offering (IPO) of its common stock on Nasdaq.
Vietnamese e-commerce holding Society Pass files for IPO on Nasdaq
Society Pass has acquired Lefair as part of its plan to seek opportunities in the high-end consumer segment

No existing shareholders have indicated an interest to purchase shares at the IPO price.

According to Dealstreetasia, the total proceeds could reach nearly $27 million. The firm acquires and operates lifestyle and food and beverage (F&B) online e-commerce platforms in Southeast Asia.

Since 2018, Society Pass developed the SoPa branded platform and acquired the #HOTTAB and Leflair ecosystems to facilitate e-commerce transactions between consumers and merchants in Southeast Asia, including Vietnam and South Asia, including India, Bangladesh, Sri Lanka, the Maldives, Nepal, Bhutan, and Pakistan.

On June 23, Society Pass said it had acquired the Leflair brand and other intellectual property, including domain names, from a Hong Kong company. The deal is part of the company’s plan to seek opportunities in the high-end consumer segment.

“We are an acquisitions-focused e-commerce holding company," the company said. "After the completion of our IPO, we intend to expand our e-commerce ecosystem throughout the rest of Southeast Asia and South Asia by making selective acquisitions of leading e-commerce companies and applications with particular focuses on the Philippines, Indonesia, India and Bangladesh."

Seeking Alpha noted that Society Pass’ management is headed by founder, chairman, and CEO Dennis Nguyen, who has been with the firm since inception and was previously in various roles at Nortel Networks and Citigroup.

As of June 30, Society Pass had $142,633 in cash and $3.3 million in total liabilities.

Free cash flow during the 12 months ending on June 30 was negative $2 million.

According to its filing on Nasdaq, the company’s business currently comprises of seven e-commerce interfaces which are divided into two segments: a consumer-facing and a merchant-facing segment. The consumer-facing segment includes SoPa Loyalty App, Loyalty Marketplace website, Leflair Lifestyle App, and Leflair Lifestyle Marketplace website.

By Tri Lam

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