Delixy Holdings Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

Delixy Holdings Limited (NASDAQ:DLXY), a Singapore-based oil products trading company, has announced the pricing of its initial public offering at $4.00 per share. The IPO consists of 2,000,000 ordinary shares, with 1,350,000 shares offered by the company and 650,000 by selling shareholders.

The company expects to raise gross proceeds of $5.4 million from the offering, which will be used for expanding product offerings, strengthening market position, potential strategic acquisitions, and general working capital. Trading is set to commence on July 9, 2025, on the Nasdaq Capital Market under the symbol "DLXY". The offering is expected to close around July 10, 2025, with Bancroft Capital, LLC serving as the sole lead underwriter.

Positive

• Expected gross proceeds of $5.4 million to fund growth initiatives
• Successful listing approval on Nasdaq Capital Market
• Strategic focus on expansion through product offerings and potential acquisitions
• Firm commitment underwriting by Bancroft Capital

Negative

• Relatively small IPO size of only $5.4 million
• Significant portion (32.5%) of IPO shares coming from selling shareholders
• Additional 3 million shares registered for potential resale by existing shareholders
• Company will not receive proceeds from selling shareholders' portion

Insights

IPO Specialist

Delixy's $5.4M IPO provides modest capital for a Singapore oil trading firm entering public markets at $4/share with a $8M total valuation.

Delixy Holdings, a Singapore-based oil products trading company, has priced its IPO at $4.00 per share, offering a total of 2 million ordinary shares. The company itself is selling 1.35 million shares, while existing shareholders are selling 650,000 shares. The structure indicates the company will raise $5.4 million in gross proceeds before deducting underwriting expenses.

This is a relatively small IPO by market standards, with a modest implied market capitalization of approximately $8 million based on the 2 million shares being offered. The use of proceeds highlights typical growth-oriented objectives: expanding product offerings, strengthening market position, potential strategic acquisitions, and working capital.

The IPO includes a concurrent registration for resale of an additional 3 million shares by existing shareholders, suggesting significant insider ownership. This secondary component could potentially create selling pressure post-IPO if these shareholders decide to exit their positions.

Bancroft Capital is serving as the sole underwriter on a firm commitment basis, meaning they've agreed to purchase all shares offered regardless of whether they can sell them to public investors – providing some certainty for the issuer but also reflecting the limited size and institutional interest in the offering.

For a company operating in the competitive oil products trading space, the modest capital raise raises questions about the scale of operations and growth potential. The immediate 35% insider selling component (650,000 of 2 million offered shares) might signal limited confidence in significant near-term appreciation.

Singapore, July 08, 2025 (GLOBE NEWSWIRE) -- Delixy Holdings Limited (the “Company” or “Delixy”), a Singapore-based company engaged in the trading of oil related products, today announced the pricing of its initial public offering (the “Offering”) of 2,000,000 ordinary shares, par value US$0.000005 per share, (“Ordinary Shares”), 1,350,000 of which are being offered by the Company and 650,000 by the selling shareholders Mega Origin Holdings Limited (as to 325,000 Ordinary Shares) and Novel Majestic Limited (as to 325,000 Ordinary Shares) (the “Selling Shareholders”), at a public offering price of US$4.00 per Ordinary Share. The Company is also registering a resale prospectus concurrent with the Offering for the resale of 3,000,000 Ordinary Shares held by Cosmic Magnet Limited, Rosywood Holdings Limited, Dragon Circle Limited and Novel Majestic Limited, Golden Legend Ventures Limited (the “Resale Shareholders”). The Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on July 9, 2025 under the ticker symbol “DLXY.”

The Company expects to receive aggregate gross proceeds of US$5.4 million from the Offering, before deducting underwriting discounts and other related expenses. The Company will not receive any proceeds from the sale of Ordinary Shares offered by the Selling Shareholders or Resale Shareholders in the Offering. The Offering is expected to close on or about July 10, 2025, subject to the satisfaction of customary closing conditions.

Proceeds from the Offering will be used for: (i) expanding product offerings; (ii) strengthening market position; (iii) potentially making strategic acquisitions and business cooperations, including joint ventures and/or strategic alliances and (iv) general working capital and corporate purposes.

The Offering is being conducted on a firm commitment basis. Bancroft Capital, LLC is acting as the sole lead underwriter for the Offering. Ortoli Rosenstadt LLP is acting as U.S. counsel to the Company, led by William S. Rosenstadt and Mengyi “Jason” Ye, and Nelson Mullins Riley & Scarborough LLP is acting as U.S. counsel to the Underwriters, led by W. David Mannheim, Ashley Wu and Kathryn Simons, in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-283248), as amended, and was declared effective by the SEC on July 8, 2025. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering, when available, may be obtained from Bancroft Capital, LLC, 501 Office Center Drive, Suite 130, Fort Washington, PA 19034, or by telephone at +1 (484) 546-8000. In addition, copies of the final prospectus relating to the Offering, when available, may be obtained via the SEC's website at www.sec.gov.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the SEC for more information about the Company and the Offering. This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company’s securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Delixy Holdings Limited

Delixy Holdings Limited is a Singapore-based company principally engaged in the trading of oil-related products, including (i) crude oil and (ii) oil-based products such as fuel oils, motor gasoline, additives, gas condensate, base oils, asphalt, petrochemicals and naphtha (heavy gasoline). Operating across multiple countries in Southeast Asia, East Asia, and Middle East, Delixy has established a strong presence in the region’s oil trading markets. While Delixy maintains a diversified portfolio of oil products, crude oil trading represents a core aspect of its business. The Company leverages its strong existing relationships with customers and suppliers as well as deep industry expertise to provide value-added services, including tailored recommendations on optimal trading strategies and shipping and logistical support where required. In addition, the Company’s financing capabilities allow it to extend credit terms to customers while satisfying suppliers’ immediate payment terms. For more information, please visit the company’s website: https://ir.delixy.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s proposed offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs, including the expectation that the Proposed Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “believe”, “plan”, “expect”, “intend”, “should”, “seek”, “estimate”, “will”, “aim” and “anticipate” or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Registration Statement and other filings with the SEC.

For media inquiries, please contact:

Delixy Holdings Limited
Investor Relations Department
Email: ir@delixy.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is the IPO price for Delixy Holdings (DLXY) stock?

Delixy Holdings (DLXY) has priced its IPO at $4.00 per ordinary share.

How much money will Delixy Holdings raise in its IPO?

Delixy Holdings expects to raise $5.4 million in gross proceeds from the offering, before deducting underwriting discounts and other expenses.

When will DLXY stock start trading on Nasdaq?

DLXY stock is expected to commence trading on the Nasdaq Capital Market on July 9, 2025.

How will Delixy Holdings use its IPO proceeds?

The proceeds will be used for expanding product offerings, strengthening market position, potential strategic acquisitions and business cooperations, and general working capital.

Who is the underwriter for Delixy Holdings' IPO?

Bancroft Capital, LLC is acting as the sole lead underwriter for the IPO.

How many shares is Delixy Holdings offering in its IPO?

The IPO consists of 2,000,000 ordinary shares, with 1,350,000 shares offered by the company and 650,000 by selling shareholders.