(CapitalWatch, Nov. 25, New York) Global Mofy Metaverse Ltd., which aims to become the largest 3D digital asset provider in China, has applied to raise up to $33 million in an initial public offering in New York.
With headquarters in Beijing, the operating subsidiaries of Global Mofy provide solutions in virtual content production, digital marketing, and digital assets development for the metaverse industry.
Its digital assets bank consists of more than 7,000 units of 3D content with 4K resolution, according to the company's prospectus. The Mofy Lab platform creates 3D high-definition virtual version of real-world objects and provides a "one-stop, low barrier, low-cost solution" to assist metaverse companies in creating virtual content.
Global Mofy has attracted big global brands such as L'Oreal (OTC: LRLCY) and Pepsi (Nasdaq: PEP) as its clients. In China, the company has connected with tech giants Alibaba (NYSE: BABA; HKEX: 9988) and Tencent (OTC: TCEHY; HKEX: 0700), which are building their own metaverse platforms.
Global Mofy also said it has established a business relationship with Wimi Hologram (Nasdaq: WIMI). U.S. investors may be familiar with Wimi, a microcap stock trading on the Nasdaq since 2020. The company produces holographic content and now has a foothold in the U.S. market, but it has not had much luck in public trading – year-to-date, WIMI stock has lost 79% in market value, now trading on the pink sheets.
For the half-year ended March 2022, Global Mofy booked $11.2 million in revenue, up 183% year-over-year. It reported $401,000 in income in contrast to a loss of $162,500 in the same period a year ago. Virtual technology services generated 77% of the revenue during the period, while the remaining 23% came from the digital marketing segment, the prospectus said.
For the 12 months through September 2021, Global Mofy posted $14.3 million in revenue on net income of $1.4 million. Year-over-year, revenue improved 183%.
The company noted that it expects a revenue decline in the digital marketing segment for the year ended September 2022 due to its shift of focus to the digital asset development, its third line of business.
Global Mofy plans to use the proceeds from the offering for R&D, marketing, potential acquisitions, business expansion, hiring and training new talents, and working capital.
The company is offering 6 million of its ordinary shares at the price range of $4.5 to $5.5 apiece, expected to be sold on the Nasdaq Capital Market under the symbol "GMM."
Maxim Group LLC is underwriting the deal.