CGL Logistics Holdings Ltd IPO - What You Need to Know

Hey there! If you’re thinking about investing in CGL Logistics’ IPO but aren’t sure where to start, here’s a plain-English breakdown of what you need to know. No fancy terms, just the basics.

1. What does this company actually do?

Think of CGL Logistics as a “behind-the-scenes mover” for businesses. They help companies store, pack, and ship stuff—like raw materials, finished products, or even delicate electronics—safely and on time. If a factory needs parts delivered daily or an online store needs to ship orders globally, CGL handles the trucks, warehouses, and paperwork.

2. How do they make money (and are they growing?)

CGL charges fees for their services, like storage rent in their warehouses, delivery costs, or custom packaging. The company claims revenue grew significantly last year but didn’t provide exact percentages in their filing. They credit this growth to signing big clients in e-commerce and manufacturing, plus expanding into Southeast Asia.

Important note: Their growth projections come from a report they paid Stave Horizon Initiative Limited (a research firm) to prepare. Always double-check third-party claims!

3. What will they do with the IPO money?

They’re raising cash to:

• Expand offices: $4.17 million to open new locations
• Boost partnerships: $595,000 to sign long-term shipping contracts
• Upgrade tech: $833,000 for better shipment tracking tools
• Rent more warehouses: $1.55 million for extra storage
• General costs: The rest covers day-to-day operations and IPO fees

Keep in mind: These plans could change if management shifts priorities.

4. Will they pay dividends?

Probably not – the company hasn’t shared specific plans but suggests they’ll reinvest profits into growth instead of paying shareholders.

5. What’s the catch for IPO investors?

You’re paying $4.00 per share, but here’s the math:

• The company’s estimated value per share (after debts) is $0.80 to $0.89 after the IPO.
• That means $3.11 to $3.20 of your $4.00 investment vanishes immediately to cover this gap.

Another heads-up: If the IPO sells out, underwriters can buy 562,500 extra shares within 45 days. This could slightly dilute your ownership.

6. How many shares and what price?

• Starting shares: 15 million existing shares
• IPO sale: Adding 3.75 million new shares at $4.00 each
• Total after IPO: 18.75 million shares (could go up to 19.3 million if extra shares sell)
• Money raised: $15 million base (up to $16.5 million with extra shares)

Bottom Line

CGL Logistics is betting on global expansion and tech upgrades to drive growth, but there are red flags:

• You’re paying 5x the estimated post-IPO share value upfront
• Key growth claims rely on a paid third-party report
• The company provided limited details about risks, leadership, and competitors

Final thought: This IPO might appeal to investors comfortable with high-risk bets, but the lack of transparency is worth noting. Always do your own research or consult a financial advisor.

Got questions? Drop ’em below! (We’ll answer in plain English, promise.) 😊

P.S. This company shared less information than typical in their IPO filing. When in doubt, remember: if something feels unclear, it’s okay to sit this one out.