Service Robot Developer Proposes $15M Initial Public Offering

Richtech Robotics, a Las Vegas-based service robot developer, has announced the terms for its initial public offering (IPO), saying it plans to raise $15 million for its pipeline of robotic solutions.

In the IPO, the company said it hopes to raise the funds by offering 3 million shares at a price range of $4 to $6.

According to its regulatory filing, Richtech will use around 35% of the funds raised for research and development purposes, with “a particular focus on developing and optimizing robots for various vertical applications … gaining a deep understanding of the workflows and processes of different industries in order to improve and upgrade traditional methods through the integration of robotics.” 

“Our efforts will also include the development of cloud platforms, the integration and advancement of artificial intelligence, and the exploration of more efficient ways to scale up production,” the company said.

In addition, around 25% of the funds will be used to invest in inventory to accelerate product delivery and 25% will be used for marketing and promotion, with the view to expand into European and Southeast Asian markets. Finally, 15% will be used to supplement working capital.

Richtech Robotics designs and creates service robots for a range of industries, including restaurant service, hotel room delivery, cleaning services, and food and drink preparation. In addition to the robots themselves, the company provides a cloud platform where customers can track efficiency and production.

Related:LG Updates Its Service Robot for Hotels, Restaurants

Primary customers for Richtech’s robots are hotels and restaurants, though it also has potential applications at casinos, event spaces and factories.

One example is the company’s ADAM robot, which was present at last year’s CES to make and serve drinks to visitors.