Mohawk Group IPO: What You Need To Know

Mohawk Group offers investors an opportunity to take a stake in a rapidly growing, technology-driven consumer products company.

The IPO Terms

Mohawk proposes to offer 3.33 million shares in an initial public offering at an estimated price range of $14-$16, according to a May 24 amended S-1 filing.

At the midpoint of the estimated price range, the IPO is expected to amass gross proceeds of $49.95 million.

The company seeks to list its shares on the Nasdaq under the ticker symbol MWK.

Since Mohawk qualifies as an emerging growth company under the JOBS Act of 2012, it said it has chosen to comply with certain reduced public company reporting requirements.

Roth Capital Partners and A.G.P are the joint book-running managers for the offering.

The Company

Mohawk was founded in 2014 and is based in New York. The consumer products company applies artificial intelligence and machine learning and uses data and social proof to validate high-caliber product offerings, rather than relying on brand value and traditional marketing tactics.

From its founding, the company has so far raised $72.6 million in equity capital.

Mohawk offers its stock-keeping units on Amazon.com, Inc. AMZN's U.S. marketplace and other e-commerce platforms.

It has four owned-and-operated brands — hOme, Vremi, Xtava and RIF6 — covering products such as home and kitchen appliances, kitchenware, environmental appliances, beauty related products and, to a lesser extent, consumer electronics.

The Finances

Mohawk reported revenues of $73.3 million in 2018, up 101% from 2017, with the top-line doubling each year since 2015. The net loss for 2018 widened from $23.1 million to $31.8 million.

For the three months ended March 31, the company reported revenue that rose by $3.5 million year-over-year to $17.8 million.

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