Japanese paper and scrap metal recycling service provider Seahawk Recycling (SEAH.US) has increased the size of its IPO by 88%, intending to raise $19 million.

On Wednesday, Japan-based paper and scrap metal recycling service provider Seahawk Recycling Holdings (SEAH.US) increased the proposed size of its upcoming initial public offering (IPO). The company currently plans to raise $19 million by issuing 3.8 million shares at a price range of $4 to $6 per share. Previously, the company had applied to issue 2 million shares at the same price range. With the revised transaction size, Seahawk Recycling will raise 88% more funds than previously expected, with a market value of $136 million. The company operates recycling services in Japan, covering two main areas: scrap metal recycling and paper recycling. In terms of scrap metal recycling, the company purchases scrap metal from professional collection companies and supplies it to smelters or trading companies. In the area of paper recycling, the company acquires waste paper from various sources and supplies it to paper mills and trading companies. Additionally, the company not only delivers recycled products in the domestic market but also across the entire Asia Pacific region. Seahawk Recycling was founded in 2013 and had revenue of $83 million in the 12 months ending on September 30, 2025. The company currently has a total of 17 employees. The company plans to list on Nasdaq under the ticker symbol SEAH. Guotai Securities is the sole bookrunner for this transaction. It is worth mentioning Seahawk's business model, which differs from the traditional recycling companies that focus on cheap sourcing and larger quantities. Seahawk operates more like a high-end real estate agency, partnering with enterprise-level waste sources in Japan and East Asia, as well as community recycling networks. They use long-term agreements to secure predictable and traceable raw material inputs, allowing them to control pricing. In the middle part of their operations, Seahawk functions similar to an industrial raw material quality inspection center. Waste materials go through processes such as sorting, purification, and classification to ensure consistency and standardized specifications for manufacturing industries, rather than just focusing on cost. In the downstream aspect, they conduct cross-border raw material dispatch, leveraging the "location mismatch" of raw materials in different countries to deliver from surplus areas to areas in need, turning cross-border operations from cost centers to profit centers. Furthermore, although the Seahawk team consists of only 17 people, they act as the "control tower" for global raw materials, determining the flow and delivery specifications of materials rather than directly engaging in handling and logistics. The team only retains three types of positions pricing decision-makers, system designers, and key client controllers while outsourcing all other tasks and utilizing digital systems instead of manual coordination. This shift focuses on the most valuable aspects of the business and rejects the old recycling model. The IPO, on the surface, is intended for expanding production and upgrading systems, but what capital truly values is the replicability of their model. The categories of raw materials, countries, and regions can all be replicated, and once the system is in place, the marginal cost continues to decline, allowing "recycling" to establish a foundation for capitalization.