Erayak Power Solution Group IPO Review

When a private company initially makes its stock available to the public, it is called an initial public offering (IPO). Basically, an IPO notes the shift in a company from private ownership to that public ownership. Therefore, the IPO process is often stated as the company "going public."

So if you are pondering: “When is the Erayak Power Solution Group IPO date?” and so on…look no further.

Erayak Power Solution Group Inc. History

Before we answer the question: “When is Erayak Power Solution Group going public?”—Here’s some background information.

Erayak Power Solution Group was established in 2019 under Cayman Islands law. They do business mainly through their wholly-owned subsidiaries. The company focuses on manufacturing, research and development (“R&D”), as well as wholesale and retail of power solution goods. 

Erayak is a company who owns products that are used primarily on farming and industrial vehicles, recreational vehicles (“RVs”), electrical goods, and outdoor equipment. Their main office is situated in Zhejiang province, where they have a vast customer base and extend their reach internationally. They aim to be a prestigious power solutions brand and facilitate mobile and outdoor living. 

They endeavor to leverage flexibility and desire for quality to offer a personalized mobile living suggestion for the individual customer. 

Since the establishment of Zhejiang Leiya in 2009, the company has developed into a manufacturer that doesn’t just design, develop and make their type of premium power solution goods in bulk. Still, they create e-commerce channels along the retail chain. 

Through their PRC subsidiaries, they supply products in Japan, England, Germany, France, Spain, Switzerland, Sweden, the Netherlands, the U.S., Canada, Mexico, Australia, and Dubai, as well as nine additional countries. 

Zhejiang Leiya makes all goods in factories working under quality management systems certified by the International Organization for Standardization (ISO 9001:2015).

Moreover, these products have been examined for regulatory compliance and safety. 

They amass most of their revenue from three kinds of products: 

1. Inverters make up about 63% for the six months ending on June 30, 2022, 82% and 86% of the total revenue for the fiscal years ending on December 31, 2021, and 2020, respectively; 
2. Chargers make up about 3.49% for half the year ending on June 30, 2022, 7.52% and 7.39% of their entire revenue for the fiscal years ending on December 31, 2021, and 2020, respectively; 
3. Gasoline generators make up about 32.95% of half the year ending on June 30, 2022, and 8.28% and 4.91% of their entire revenue for the fiscal years ending on December 31, 2021, and 2020, respectively.

Let’s learn more about their IPO date and other important information.

Erayak Power Solution Group Public Listing Key Data and IPO Date

Erayak Power Solution Group IPO Date: 14/12/2022
Ticker: RAYA
Exchange: Nasdaq
IPO stock price: $4
Shares(mln): 3
CEO: Lingyi Kong

At the closing of Erayak Power Solution Group Stock IPO reported 3 million Class A ordinary shares at a public offering price of $4.00 per share. 

The cumulative gross income was $12 million before subtracting underwriting discounts, commissions, and additional costs. Furthermore, Erayak has allowed the underwriters a 45-day option to buy up to a further 450,000 ordinary shares at the public offering stock price, minus underwriting discount and commissions.

The ordinary shares commenced trading on the Nasdaq Capital Market on their Erayak Power Solution Group IPO date of December 14, 2022.

So What About Investing Now?

Now that we know Erayak Power Solution Group IPO price and other vital data, let’s consider this a good investment. As a nano-cap investment falling under the critical $50 million boundary, not many experts in the financial industry gave their views on RAYA stock. 

Regarding IPOs for companies, RAYA stock fits in well with current and flourishing industries. As per Allied Market Research, the global power inverter market attained a value of $68.2 billion in 2021. 

Although, experts predict that this industry will grow to $112.7 billion by 2031, accumulating a compound yearly growth rate (CAGR) of 5.2% from 2022 to 2031.

Moreover, Grand View Research announced that the worldwide outdoor living structure market would grow to a whopping $1.8 billion in 2021. By 2028, revenue in this industry might reach $2.9 billion. With that in mind, Erayak’s power solutions may occupy an enviable niche in many industries, possibly extending its business’s reach.

On the flip side, RAYA stock carries risks. With respect to the outdoor living sector, it’s important to remember the unique social shift and opportunities that the COVID-19 pandemic brought about. 

Conversely, Resume Builder indicated that 90% of companies will call for their employees to return to the office for at least some week beginning in 2023. Therefore, this return to normalcy might stifle these opportunities.

When it comes to the power inverter market, the underlying application is not only applicable to just a single entity. Bearing that in mind, competitive stress may result in an enduring threat. 

Moreover, CapitalWatch indicates that Erayak’s best two customers amounted to 27% of the entire corporate revenue. If something were to happen to these entities, the consequences could be dire.

Erayak is a profitable business that brought in $2.19 million in net income for six months ending on June 30, 2022. On the other hand, the company announced $1.41 million in net income in the previous year.

A huge positive is that Erayak posted revenue of almost  $11.5 million in the half-year period ending June past. This was better than the $8 million earned the year prior. Furthermore, the latest report's gross profit amounted to $3.87 million.

Erayak has a lot of positives, but it is important to remember that all investments carry risks. It is important to monitor how the company has been doing since Erayak Power Solution Group going public.

If you don’t believe that Erayak’s got the power, you can go to our IPO section and consider the other scheduled IPOs. 

We can get you connected to the best information on IPOs for investment.

FAQ

Is Erayak Power Solution Group, a public company?‍

Erayak Power Solution Group IPO date and price was December 14, 2022, at $4.00 per share.

What is Erayak Power Solution Group's net worth?

RAYA had a market cap of $32.40 million on December 21, 2022.

Is Erayak Power Solution Group publicly traded?

Since December 14, 2022, RAYA has gone public.

Why are so many companies opting for a special purpose acquisition company (SPAC) instead of a traditional IPO?

Lots of private companies considering going public are keen to find out if merging with a SPAC is better than an IPO (e.g. an IPO on the NYSE). In short:  It depends. There are some benefits in a SPAC merger—like speed and a set price—it does have difficulties.