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Lizhan Environmental Corporation (LZEN) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Lizhan Environmental (NYSE:LZEN) is a Chinese company which makes and sells synthetic leather and fabrics by recycling used leather, and other waste materials. The company's products are used to make furniture, upholstery in cars, and some garments. The company exported 23.7% of its 2010 sales to countries like the US, Nicaragua, Germany, Belgium and France. The remaining 76.3% of sales are sold to customers located in China. The company uses a technology, for which they have filed a patent, that combines leather waste, fabric, resin, and other inputs to produce their synthetic textiles. The company's facilities are located in the Zhejiang Province which is close to many of the leather industry clusters in China.[1]
Lizhan Environmental plans to launch a new product called Evergreen LZ. This textile is meant to be a synthetic textile which is very similar in its look and feel to genuine leather. The company hopes to begin sale of this product by the end of November 2010. The company expects that this new product will appeal to furniture and car manufacturers who are interested in environmentally friendly practices. Because the textiles highly resemble leather without actually being made from leather, the company expects to be able to sell Evergreen LZ at a higher margin than their other products.[2]
The company's initial public offering of stock on the NYSE occurred on November 18, 2010. The company offered 2.5M shares each for $4. This was within at the high end of the initial price range of $3-$4, but below the revised price range of $5-$6. The IPO raised a total of $10M. The lead underwriter of the deal was Maxim Group LLC.[3]
The company increased its net sales from 2008 to 2009 by 65%. The company reported sales of $13.1M in 2008 to $21.6M in 2009. During the same period, the company's net income was $1.5M and $2.7M respectively. In 2010, the company's gross margin was 17%. [4]
References
- ↑ LZEN F-1/A 2010 PROSPECTUS SUMMARY "Overview" pg 1
- ↑ LZEN F-1/A 2010 PROSPECTUS SUMMARY "Overview" pg 1-2
- ↑ Renaissance Capital - IPO Home "Lizhan Environmental prices IPO at $4, below the revised range" 19 Nov 2010
- ↑ LZEN F-1/A 2010 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pg 10
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