DDC Enterprise (DDC) to Raise $45 Million in IPO

DDC Enterprise (DDC) expects to raise $45 million in an IPO on Friday, November 17th, IPO Scoop reports. The company will issue 4,300,000 shares at a price of $9.50-$11.50 per share.

In the last year, DDC Enterprise generated $24.8 million in revenue and had a net loss of $16.9 million. The company has a market cap of $202.5 million.

CMB International Capital, The Benchmark Company, Guotai Junan Securities, Eddid Securities and Futures and Tiger Brokers acted as the underwriters for the IPO.

DDC Enterprise provided the following description of their company for its IPO: “*Note: DDC Enterprise is also known as DayDayCook. (Incorporated in the Cayman Islands) Our mission is to promote Asian cooking to the world. We are a leading content driven (i.e. using content to reach and engage target customers) consumer brand offering easy, convenient ready-to-heat (“RTH”), ready-to-cook (“RTC”), ready-to-eat (“RTE”) products. Convenience is at an all-time high with ready-to-eat prepared food. They reduce the time and energy needed to prepare a meal at home while never compromising on food safety, variety, and taste. Our brands and products promote healthier lifestyle choices to our predominately Millennial and Generation Z (“GenZ”) customer-base. We are also engaged in the provision of advertising services.  We were founded in Hong Kong in 2012 by Ms. Norma Ka Yin Chu, a highly regarded entrepreneur and a true cooking enthusiast, as an online platform which distributed food recipes and culinary content. Subsequently, we further expanded our business to provide advertising services to brands that wish to place advertisements on our platform or video content. In 2015, we entered the Mainland China market through the establishment of Shanghai DayDayCook Information Technology Co., Ltd (“SH DDC”) to engage in technology development of computer software, food circulation and advertising production in China. In 2017, we started expanded our business from content creation to content commerce. Later in 2019, we extended our business to include the production and sale of, among others, own-branded RTH, RTC convenient meal solution products.  As of March 31, 2023, our main product categories include (i) own-branded RTH products — typically semi-cooked meals with some but minimal preparation required ahead of serving, (ii) own-branded RTC products — ready to be consumed within 8 to 15 minutes with some additional cooking preparation, (iii) own-branded RTE products — typically pre -cooked meals that are ready to serve with minimal level of additional preparation, which includes our plant-based meal products localized for the palate of an Asian consumer, and (iv) private label products (i.e. third-party branded food products). As of March 31, 2023, we had 24.5 million paid customers. Around 69% of our followers on social media & video platforms are GenZ. 50% of customers are from the Eastern & Southern parts of China, and 86% are female. In particular, we believe that our products appeal to GenZ because (1) when compared to older age groups, GenZ generally do not want to spend a long time cooking at home and they value cost effective options like RTC, RTH and RTE meals due to the ease of cooking that RTC, RTH and RTE products provide; (2) we promote our products mainly through social media, the audience of which are mainly the GenZ population; (3) we mainly sell our products through e-commerce platforms, including livestreaming e-commerce, the customers demographics of which are dominated by GenZ; (4) plant-based diets have progressed from a food trend to a globally recognized lifestyle which GenZ is more willing to embrace. The average age of a viewer engaging with our products or marketplace is younger than 30 years old. From 2018 to March 2023, we have a content library with more than 247,874 minutes of in-house created content. *Note: Net loss and revenue are for the year that ended Dec. 31, 2022. (Note: DDC Enterprise Limited filed an F-1/A dated Nov. 8, 2023, in which it disclosed the terms and the proposed stock symbol for its IPO: 4.25 million Class A ordinary shares at $9.50 to $11.50 to raise $44.63 million. Background: DDC Enterprise filed its F-1 dated June 15, 2023, without disclosing a stock symbol or IPO terms. The IPO’s estimated proceeds are $50 million.) “.

DDC Enterprise was founded in 2012 and has 104 employees. The company is located at Room 1601-1602, 16/F, Hollywood Centre 233 Hollywood Road Sheung Wan, Hong Kong Telephone: +852-2803-0688 and can be reached via phone at +852-2803-0688 or on the web at https://www.daydaycook.com.cn/daydaycook.