Sequoia-backed Chinese Chemicals Platform MOLBASE Files For US IPO

Molecular Data Inc (MOLBASE), China’s e-commerce platform catering to the chemicals industry, has filed with the Securities and Exchange Commission for an initial public offering (IPO) on the Nasdaq Global Market.

The company disclosed that it targets to raise up to 492 million yuan ($70 million), and it will offer nearly 311 million American depositary shares (ADSs), per its filing with SEC. 

AMTD Group, Fosun Hani and Boustead Securities LLC are the underwriters for the deal. 

Headquartered in Shanghai, MOLBASE serves as data-driven integrated solutions and products platform for the global chemicals industry. Since 2013, the company has built an industry-focused supply chain platform to make transactions easy for everyone including financial institutions and warehouses&logistics providers.

MOLBASE is looking to strengthen artificial engine capabilities, enrich its SaaS suite and explore strategic business opportunities.

Prior to the filing, MOLBASE has closed rounds of financing from Trustbridge Partners, Sequoia Capital China, Fosun Group and Sinovation Ventures. Trustbridge Partners and Sequoia Capital China remain the principal shareholders holding 17 per cent stake and 15.9 per cent respectively while Fosun RZ Capital owns 14.1 per cent. 

MOLBASE founder Dongliang Chang holds 17.6 per cent stake in the firm. 

As of September 30, 2019, it has registered gross merchandise value of 186 billion yuan ($26 billion). Meanwhile, the two e-commerce platforms under the company, molbase.com and molbase.cn, have a total of 110,948 customers and 35,085 suppliers.