Sharewow Ltd

Sharewow Ltd IPO – What You Need to Know (Updated!)

Hey there! Thinking about investing in Sharewow’s IPO? Let’s break down what you actually need to know, without the Wall Street jargon.

1. What does Sharewow really do?

Sharewow is a tech company focused on 3D portraits. They set up kiosks and stores where you can get scanned to create lifelike 3D models (think action figures or digital avatars). They also sell equipment, software, and services to businesses.

• Example: They made custom 3D portraits for athletes at the 2023 World University Games.
• Two brands: “Suwa” in China, “Sharewow” internationally.
• Tech cred: They design their own scanning booths and AI software.

2. How do they make money?

• Service fees: Charging businesses for equipment, software licenses, and setup help (only 20-21 big clients in 2023-2024).
• Global growth: Made 15.6% of revenue outside China in 2023, jumping to 36.6% in 2024 (Australia, Mexico, USA).
• Financial health:
  • Revenue: $1.7M (2023) → $1.9M (2024)
  • Gross profit margin: 34.6% → 37.7%
  • BUT lost $0.8M (2023) → $1.0M (2024)

3. What will they do with IPO cash?

• Build more 3D photo kiosks worldwide
• Improve AI tech (better scans)
• Pay off debt
• Upgrade store management software

4. Biggest risks? Don’t skip this!

• 🇨🇳 China’s new IPO rules (March 2023):

  • The Chinese government could demand new approvals for their Nasdaq listing or block it entirely.
  • If blocked, shares could crash or become worthless.

• Eggs in one basket: Only ~20 business clients. Losing one hurts.

• Unpaid bills: Clients owe them $224k in 2024 (triple 2023’s amount). Cash flow could dry up fast.

• Tech lawsuits: Risk of fines or shutdowns if accused of copying tech.

• Weak patents: Only 5 registered patents (easy to copy) and 15 pending.

• Franchise headaches: Miss a government filing? Risk fines or partners quitting.

• Single supplier: Critical booth parts come from one Chinese supplier. No backup plan.

• Global growing pains: 40% of revenue from new markets – can they handle different rules?

• Founder control: Founder Libin Kuang owns 47.7% of shares. His decisions rule.

• No dividends: They won’t pay cash dividends soon. Profit only comes from selling shares.

• Locked-up shares: Insiders can’t sell for 180 days. After that? Potential share dump → price crash.

• China cash crunch: Most money is in China. The government could block transfers abroad.

5. How do they stack up against competitors?

The company didn’t provide detailed comparisons, but here’s what we know:

• Traditional photo studios: Sharewow’s tech is cooler but pricier.
• 3D printing companies: Sharewow focuses on portraits, not industrial uses.
• Social media filters: Higher quality than TikTok AR, but less convenient.

6. Who’s in charge?

• Libin Kuang (Founder): Controls 47.7% of shares. Final say on all decisions.
• Shuxun Huang (Co-founder): Owns 9.72%.
• Jamie Chen (CEO): Ex-Uber, now leading a very different tech play.
• Maria Gomez (COO): Retail ops expert managing global kiosks.
• The company shares limited details about the team’s deeper experience.

7. Where to buy shares?

• Trying to list on Nasdaq as SUWA.
• ⚠️ Catch: The IPO only happens if Nasdaq approves AND China doesn’t block it.
• ⚠️ Reminder: Officially for U.S. investors only. Check local laws if abroad!

8. Price and shares?

• Selling 10 million shares at $15–18 each.
• Total company value: ~$1.5–1.8 billion.

Final Thought:

Sharewow is a niche bet on 3D avatars and AI. Revenue is growing, but so are losses. Biggest red flags: China’s unpredictable rules, client concentration, unpaid bills, and insider control. If you’re okay with high risk (trends fading, tech copycats, geopolitical drama) and believe in 3D portraits as the next big thing, it might fit a speculative portfolio. Otherwise, tread carefully.

P.S. This isn’t financial advice. Chat with a financial advisor before deciding! 😊

Note: Sharewow’s IPO filing lacks depth in some areas (like competitor analysis and team background), which is worth considering.