Kandal M Venture Limited Announces Full Exercise of Underwriters’ Over-Allotment Option

Rhea-AI Summary

Kandal M Venture Limited (NASDAQ: FMFC), a contract manufacturer of luxury leather goods in Cambodia, announced the full exercise of the underwriters' over-allotment option for its IPO. The underwriters purchased an additional 300,000 Class A ordinary shares at $4.00 per share, generating extra gross proceeds of $1.2 million.

The total IPO size has now increased to 2,300,000 Class A ordinary shares with gross proceeds of $9.2 million. The company's shares began trading on the Nasdaq Capital Market on June 25, 2025. Proceeds will fund geographical expansion into European markets, enhance production capacity, establish a new design center, and provide working capital.

Positive

• Successfully completed IPO with full exercise of over-allotment option, indicating strong demand
• Total gross proceeds of $9.2 million to fund expansion and growth initiatives
• Strategic plans for European market expansion and production capacity enhancement
• Successful listing on Nasdaq Capital Market provides access to capital markets

Negative

• Relatively small IPO size may limit growth potential
• Geographic concentration risk with manufacturing solely in Cambodia
• Will face increased regulatory and compliance costs as a public company

News Market Reaction

+14.67% 1.5x vol

30 alerts

+14.67% News Effect

+16.1% Peak in 26 hr 40 min

+$17M Valuation Impact

$130M Market Cap

1.5x Rel. Volume

On the day this news was published, FMFC gained 14.67%, reflecting a significant positive market reaction. Argus tracked a peak move of +16.1% during that session. Our momentum scanner triggered 30 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $17M to the company's valuation, bringing the market cap to $130M at that time. Trading volume was above average at 1.5x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

New York, July 16, 2025 (GLOBE NEWSWIRE) -- Kandal M Venture Limited (Nasdaq: FMFC) (the “Company”), a contract manufacturer of affordable luxury leather goods with manufacturing operations in Cambodia, today announced that the underwriters of its previously announced initial public offering (the “Offering”) have exercised their over-allotment option in full to purchase an additional 300,000 Class A ordinary shares at the public offering price of $4.00 per share, resulting in additional gross proceeds of $1.2 million, before deducting underwriting discounts and other related expenses. After giving effect to the full exercise of the over-allotment option, the total number of Class A ordinary shares sold by the Company in the Offering has increased to 2,300,000 Class A ordinary shares and the gross proceeds has increased to $9.2 million, before deducting underwriting discounts and other related expenses. The option closing date was July 16, 2025. The Class A ordinary shares began trading on the Nasdaq Capital Market on June 25, 2025, under the symbol “FMFC.”

The Company intends to use the net proceeds for (i) broadening its customer base by expanding its geographical reach to other key markets, including the European markets, (ii) enhancing its production capacity, (iii) establishing a new design and development center for enhancing its product development capabilities, and (iv) additional working capital and other general corporate purposes.

The Offering was conducted on a firm commitment basis. Dominari Securities LLC acted as the representative of the underwriters, and Revere Securities LLC acted as the co-underwriter (collectively, the “Underwriters”) for the Offering. Loeb & Loeb LLP acted as U.S. legal counsel to the Company and The Crone Law Group, P.C. acted as legal counsel to the Underwriters for the Offering.

A registration statement on Form F-1 relating to the Offering has been filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-282786) and was declared effective by the SEC on June 23, 2025. The Offering was made only by means of a prospectus, forming a part of the registration statement, and a free writing prospectus. A final prospectus relating to the Offering was filed with the SEC on June 25, 2025, and is available on the SEC’s website at www.sec.gov. Alternatively, electronic copies of the final prospectus relating to this Offering may be obtained from Dominari Securities LLC by email at info@dominarisecurities.com, by standard mail to Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor, New York, NY 10022, or by telephone at +1 (212) 393-4500; or from Revere Securities LLC by email at contact@reveresecurities.com, by standard mail to Revere Securities LLC, 560 Lexington Avenue, 16th Floor, New York, NY 10022, or by telephone at +1 (212) 688-2350. 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 has been prepared for informational purposes only and shall 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 Kandal M Venture Limited

Kandal M Venture Limited is a contract manufacturer of affordable luxury leather goods with its manufacturing operations in Cambodia. Kandal M Venture Limited primarily manufactures handbags, such as shoulder bags, crossbody bags, tote bags, backpacks, top-handle handbags, satchels, and other smaller leather goods, such as wallets.

For more information, please visit the Company’s website at www.kandalmv.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. 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. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. 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.

Contacts

Company:
Kandal M Venture Limited Investor Relations Contact:
Padachi Village, Prek Ho Commune, Takhmao Town, Kandal Province, 
Kingdom of Cambodia
Email: enquiry@fmfco.com.kh 
Telephone: +855 23425205

FAQ

What is the total size of Kandal M Venture's (FMFC) IPO after the over-allotment option?

After the full exercise of the over-allotment option, the total IPO size reached 2,300,000 Class A ordinary shares, raising gross proceeds of $9.2 million at $4.00 per share.

When did FMFC stock begin trading on Nasdaq?

Kandal M Venture Limited (FMFC) began trading on the Nasdaq Capital Market on June 25, 2025.

How will Kandal M Venture (FMFC) use its IPO proceeds?

The company will use proceeds for expanding into European markets, enhancing production capacity, establishing a new design and development center, and for working capital and general corporate purposes.

Who were the underwriters for FMFC's IPO?

Dominari Securities LLC acted as the representative underwriter, and Revere Securities LLC served as the co-underwriter for the offering.

What is Kandal M Venture's (FMFC) main business?

Kandal M Venture Limited is a contract manufacturer of affordable luxury leather goods with manufacturing operations in Cambodia.