Sequoia-backed chemical ecommerce firm Molbase files for $70m IPO

Molecular Data (Molbase), a Chinese firm that offers ecommerce services and software solutions for the chemical industry, has filed with the US Securities Exchange and Commission to raise up to around US$70 million in an initial public offering.

The company will offer nearly 311 million American depositary shares for the offering, with AMTD Global Markets, Fosun Hani Securities, and Boustead Securities acting as joint bookrunners, according to the filing.

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Founded in Shanghai in 2013, Molbase provides a data-driven integrated platform for companies in the chemical industry. It offers ecommerce, financial, and warehousing and logistics solutions to participants in the chemical value chain, leveraging its proprietary AI engine and software-as-a-service suite.

The company said it plans to use most of the proceeds from the IPO to improve its logistics and warehousing capabilities. It is also looking to improve its technology, retain qualified personnel, and make strategic acquisitions and cross-border investments, among other general corporate initiatives such as marketing.

Molbase plans to list on the Nasdaq under the symbol MKD.

Prior to the IPO, the company has raised funds from companies such as Sequoia Capital China, Sinovation Ventures, Trustbridge Partners, and Fosun RZ Capital.

According to the filing, Trustbridge Partners entities and Sequoia Capital China each hold 17% and 15.9% stakes, respectively, in the company prior to the offering. Fosun RZ Capital and Sinovation Ventures each own 14.1% and 11.7% stakes, respectively.