EPSIUM ENTERPRISE LIMITED Announces Pricing of US$5.0 Million Initial Public Offering

Rhea-AI Summary

EPSIUM ENTERPRISE , a Macau-based alcoholic beverages importer and wholesaler, has announced the pricing of its Initial Public Offering (IPO) on the Nasdaq Capital Market under the symbol EPSM.

The company is offering 1,250,000 ordinary shares at $4.00 per share, aiming to raise $5.0 million in gross proceeds. Trading is expected to commence on March 26, 2025, with the offering closing around March 27, 2025. Underwriters have a 45-day option to purchase up to 187,500 additional shares.

The net proceeds allocation includes:

• 60% for acquisitions and investments in complementary businesses
• 20% for general corporate purposes
• 10% for sales, product innovation, and brand building
• 10% as reserve subject to board discretion

Positive

• IPO provides $5.0 million in new capital funding
• Majority of proceeds (60%) allocated for strategic acquisitions and business expansion
• Successful listing on major exchange (Nasdaq Capital Market)
• Underwriters have option to purchase additional shares, potentially increasing proceeds

Negative

• Small IPO size may limit market liquidity
• Only 10% of proceeds allocated to core business development (sales and brand building)
• Potential shareholder dilution from IPO and additional share option

Insights

Financial Analyst

EPSIUM's $5 million IPO represents a successful capital raise for this Macau-based alcoholic beverage distributor, though investors should note the relatively modest offering size for a Nasdaq listing. Priced at $4.00 per share with 1,250,000 ordinary shares, the company has secured vital growth capital with trading set to commence under ticker "EPSM".

The most telling aspect is EPSIUM's capital allocation strategy, with 60% earmarked for acquisitions or investments in complementary businesses. This suggests an aggressive external growth strategy rather than organic expansion alone. The remaining proceeds are divided between product innovation (10%), general corporate purposes (20%), and discretionary reserves (10%).

The firm commitment underwriting structure by D. Boral Capital indicates reasonable confidence in the offering's prospects, though investors should recognize this isn't a major investment bank. The Nasdaq Capital Market listing provides EPSIUM with enhanced visibility, access to public capital markets, and potential currency for future acquisitions.

While successful execution of the IPO process itself is positive, the size may constrain institutional investor interest and trading liquidity. The focus on Macau's alcoholic beverage market presents both a specialized niche opportunity and geographic concentration risk. Without financial details in the announcement, valuation assessment remains challenging, but the capital infusion provides immediate operational flexibility for EPSIUM's growth initiatives.

MACAU, March 25, 2025 /PRNewswire/ -- EPSIUM ENTERPRISE LIMITED (the "Company" or "EPSIUM"), a company engaged in importing and wholesaling primarily alcoholic beverages in Macau, today announced the pricing of its initial public offering (the "Offering") of 1,250,000 ordinary shares at a public offering price of US$4.00 per ordinary share. The ordinary shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on March 26, 2025 under the ticker symbol "EPSM."

The Company expects to receive aggregate gross proceeds of US$5.0 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 187,500 ordinary shares at the public offering price, less underwriting discounts. The Offering is expected to close on or about March 27, 2025, subject to the satisfaction of customary closing conditions.

Net proceeds from the Offering will be used for (i) approximately 10% of the net proceeds for sales and product innovation and brand building, (ii) approximately 60% of the net proceeds for the acquisition of, or investment in, assets, technologies, solutions, or businesses that complement our business, (iii) approximately 20% of the net proceeds for general corporate purposes, and (iv) approximately 10% of the net proceeds for reserve and subject to the discretion of the board of directors.

The Offering is being conducted on a firm commitment basis. D. Boral Capital LLC is acting as the sole underwriter for the Offering. iTKG Law LLC is acting as U.S. securities counsel to the Company, and Schlueter & Associates, P.C. is acting as U.S. counsel to the underwriter 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: 333-276313) and was declared effective by the SEC on March 25, 2025. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the prospectus relating to the Offering may be obtained from D. Boral Capital LLC, Attn: 590 Madison Avenue 39th Floor, New York, NY 10022, or by email at info@dboralcapital.com, or by telephone at +1(212)-970-5150. In addition, copies of the prospectus relating to the Offering 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 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 EPSIUM ENTERPRISE LIMITED

Through its Macau operating entity, Companhia de Comercio Luz Limitada ("Luz"), a limited liability company organized under Macau laws in 2010, EPSIUM is engaged in importing and wholesaling primarily alcoholic beverages in Macau. Through Luz, the Company imports and sells a broad range of premium beverages, primarily alcoholic beverages and, in 2022, a small quantity of tea and fruit juice. The alcoholic beverages the Company sells include Chinese liquor, French cognac, Scottish whiskey, fine wine, Champagne, and other miscellaneous beverage alcohol. Sales of Chinese liquor is by far the Company's most significant operations, and the Company is a top wholesaler of high-end Chinese liquor in Macau. For more information, please visit the Company's website: www.epsium-group.com. 

Forward-Looking Statements

Certain statements in this press release 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 Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this press release. 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. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Registration Statement filed with the SEC. 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 Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

EPSIUM ENTERPRISE LIMITED
Investor Relations Department
Email: investor.relations@epsium-group.com 

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SOURCE Epsium Enterprise Limited

FAQ

When will EPSM stock start trading on Nasdaq?

EPSM is scheduled to begin trading on the Nasdaq Capital Market on March 26, 2025.

How much money is EPSM raising in its IPO?

EPSM is raising $5.0 million through its IPO by offering 1,250,000 ordinary shares at $4.00 per share.

What is the IPO price for EPSM shares?

The IPO price for EPSM shares is set at $4.00 per ordinary share.

How will EPSM use its IPO proceeds?

EPSM will use 60% for acquisitions, 20% for general corporate purposes, 10% for sales and brand building, and 10% as board reserve.

Who is the underwriter for EPSM's IPO?

D. Boral Capital is acting as the sole underwriter for EPSM's IPO.