Gauzy Ltd., an Israeli company specializing in cutting-edge light and vision control technologies, has unveiled the terms for its initial public offering (IPO) in an F-1/A filing dated May 29, 2024. The company plans to offer 4.17 million shares, priced between $17.00 and $19.00 per share, aiming to raise approximately $75.0 million if priced at the midpoint of $18.00 per share. Gauzy Ltd. has enlisted Barclays, TD Cowen, Stifel, B. Riley Securities, and Beech Hill Securities as joint book-runners for the IPO. The company is set to start trading under the symbol "GAUZ" on the NASDAQ on June 6, 2024.
Offering Details
Gauzy Ltd. will offer 4,166,667 ordinary shares, with an additional option for underwriters to purchase up to 625,000 more shares at the initial public offering price within 30 days post-prospectus. The OIC Growth Fund has expressed interest in purchasing up to 833,333 ordinary shares, which could represent up to 20% of the total shares offered. However, this indication is not a binding commitment.
Company Overview
Founded in 2009 and based in Tel Aviv, Gauzy Ltd. leads in developing nanotechnology and electronics for light control, and mechatronics and image analysis for vision control. The company’s technologies are prominent in mobility and architectural markets, where they replace traditional mechanical products like shades, blinds, and mirrors with advanced, sustainable solutions. Key products include suspended particle device (SPD) and liquid crystal (LC) films for smart glass applications, as well as camera monitoring systems (CMS) and advanced driver assistance systems (ADAS).
Gauzy Ltd. has established partnerships and serial production capabilities with leading companies such as Boeing, Honda, Mercedes, Ford, BMW, and Avery Dennison. The company’s innovative solutions are also gaining traction in other markets, including railway, maritime, specialty vehicles, private security, and consumer appliances.
Financial Overview
The financial data disclosed in the IPO filing highlights Gauzy Ltd.'s rapid growth. For the year ended December 31, 2023, the company reported revenues of $77.98 million, a significant increase from $49.03 million in 2022. However, the company also reported substantial losses, with a net loss of $79.27 million in 2023, up from $37.90 million in 2022. For the three months ended March 31, 2024, Gauzy Ltd. reported revenues of $24.73 million and a net loss of $13.25 million.
Capitalization
As of March 31, 2024, Gauzy Ltd. reported cash and cash equivalents of $2.42 million. On a pro forma basis, considering the conversion of all outstanding redeemable convertible preferred shares and the issuance of shares upon the exercise of warrants and convertible loans, the company’s cash and cash equivalents would be $8.62 million. On a pro forma as adjusted basis, accounting for the additional issuance and sale of shares in the offering, cash and cash equivalents would reach $74.60 million.
Use of Proceeds
Gauzy Ltd. intends to use the proceeds from the IPO for general corporate purposes, including the expansion of production lines, research and development, advertising and marketing, technology development, working capital, and operating expenses. The company may also use a portion of the proceeds for potential acquisitions of complementary businesses, products, services, or technologies.
Industry and Market Potential
Gauzy Ltd. operates in the light and vision control markets, focusing on enhancing user interaction and experience within mobility and architectural applications. The company's smart glass technologies, such as dimmable automotive rooftops, and advanced CMS and ADAS solutions, cater to both OEM markets and retrofitting existing truck and bus fleets to meet safety regulations. Recent contracts to retrofit bus fleets in Lyon, France, and a city in Australia underscore the market’s growing acceptance of Gauzy’s technologies.
Competitive Strengths and Risks
Gauzy Ltd. cites its cutting-edge technologies, established partnerships, and comprehensive product offerings as significant competitive advantages. However, the company acknowledges several risks, including the need for continuous technological advancements, market acceptance challenges, and potential supply chain disruptions. Additionally, as an early growth-stage company, Gauzy Ltd. faces uncertainties related to expanding its managerial and administrative structure, implementing marketing strategies, and attracting and retaining qualified professionals.
Final Thoughts
Gauzy Ltd.’s upcoming IPO represents a significant step in the company’s growth trajectory, providing the necessary capital to expand its innovative light and vision control technologies. While the company faces challenges typical of early-stage growth companies, its strategic partnerships and market potential position it well for future success. Investors should carefully consider the associated risks and opportunities before making investment decisions.
FAQs
1. What is Gauzy Ltd.?
Gauzy Ltd. is an Israeli company specializing in innovative light and vision control technologies, focusing on markets like mobility and architecture.
2. When is Gauzy Ltd. going public?
Gauzy Ltd. is set to start trading under the symbol "GAUZ" on the NASDAQ on June 6, 2024.
3. How much does Gauzy Ltd. aim to raise with its IPO?
The company aims to raise approximately $75.0 million through its IPO.
4. What will Gauzy Ltd. use the IPO proceeds for?
The proceeds will be used for general corporate purposes, including expanding production lines, R&D, marketing, technology development, working capital, operating expenses, and potential acquisitions.
5. What are the financial highlights of Gauzy Ltd.?
For the year ended December 31, 2023, Gauzy Ltd. reported revenues of $77.98 million and a net loss of $79.27 million.
6. Who are the joint book-runners for Gauzy Ltd.’s IPO?
Barclays, TD Cowen, Stifel, B. Riley Securities, and Beech Hill Securities are the joint book-runners for the IPO.
GAUZ IPO
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