Baosheng Media Group Holdings was listed on the Nasdaq in New York on Monday, marking a new milestone for the Beijing-based online marketing service provider.
With its ticker symbol “BAOS”, the company set its initial public offering price at $5 with a total of 6 million shares of common stock to be issued.
Baosheng is expected to raise $30 million through the IPO, without deducting related offering fees.
According to the company, the funds raised will be used to expand the scale of its business, build its own network of key opinion leaders and reinforce its human resources to support business growth.
Zhong Wenxiu, founder and CEO of Baosheng, who has more than 14 years of experience in the advertising industry, said that advertisers need internet marketing channels that have higher cost-efficiency and conversion rates, which has been proved by the shifting of budget allocations toward marketing operations and content marketing.
In recent years, the growth rate in the market scale of internet marketing has declined, and in the next few years, it is inevitable that the advertising market dividend will fade, but it does not mean the demise of the internet marketing industry, Zhong added.
“Baosheng fully understands that with the arrival of the 5G era, only innovation can help internet marketing companies to take the lead in meeting advertisers’ operating needs and their own development.”
Looking ahead, the company is poised to expand its business in the fields of short video marketing and livestreaming e-commerce, and wishes to explore overseas business in due course.
Baosheng has set out to improve its operation chain for livestreaming e-commerce, covering teams of content, livestreaming incubation, data and product selection and store operation, aiming to provide advertisers with one-stop livestreaming services and in-depth customized marketing solutions, according to Zhong.
In recent years, the strong demand for overseas expansion for Chinese enterprises and products has driven continuous growth in Chinese enterprises’ advertising budgets abroad, which will be a development opportunity for Baosheng, Zhong said.
“Baosheng will take a cautious but positive attitude to explore the overseas market in due course.”
Founded in 2014, Baosheng has developed into a multi-channel online marketing agency and served more than 500 companies across the world.
The company generated revenue of $17.85 million in 2019, up 10.5 percent year-on-year from $16.16 million in 2018. It achieved a net income of $11.17 million in 2019, witnessing a year-on-year increase of 21.6 percent.