$OG Onion Global is a China based online fashion eCommerce marketplace. The company will list on May 11th selling shares at $7.25/share raising about $67.5M at about $600M Market Cap.

$OG management is headed by founder and CEO Cong (Kenny) Li, who was previously founder of another e-commerce company, Hua Ning, and worked at Procter & Gamble China and Nike China.

$OG has received at least $128M from investors including Li Bai Global, Pingsan Bai, YGC Holdings, and ECSH Xianlv Limited.

$OG fresh, fashionable and future brands, which it refers to as the 3Fs across China and parts of Asia. 

$OG has about 500K consumers who are influencers, over 2.1M active buyers on the platform & 15.5M registered consumers. They also have more than 4K brands in 24 product categories.

The fashion market they are targeting is a subset of the apparel market focused on influencer-based marketing and is about $18B in Asia Pacific.

$OG had $584M in revenue (+41% YoY) at a Gross Margin of 20%, and grew gross profits 51% YoY to $119M. The operating margin was $39M (+6.7% YoY).

$OG has $40M in cash and will raise another $67M with $6M in Free cash flow for 2020.

At $600M Market cap and $40M in Operating margin they seem reasonably valued, relative to $CPNG, $FTCH and $SE, but $OG has much lower margins.

Recommendation

While I think this is an interesting company with a good brand, I am personally not buying shares at the IPO and have no interest until I see growth in other regions. Fashion as an eCommerce segment has tremendous competition in China as well.