GRANDE GROUP LIMITED ANNOUNCES FULL EXERCISE OF UNDERWRITER’S OVER-ALLOTMENT OPTION

Rhea-AI Summary

Grande Group Limited (NASDAQ:GRAN) announced the full exercise of the over-allotment option by its IPO underwriter. The underwriter purchased an additional 281,250 Class A ordinary shares at $5.00 per share, generating gross proceeds of $1.41 million.

This brings the total IPO gross proceeds to $10.78 million before deducting underwriting discounts and expenses. The Hong Kong-based financial services company, which began trading on the Nasdaq Capital Market on July 1, 2025, plans to use the proceeds to strengthen its corporate finance advisory business, develop asset management operations, establish equity capital market services, and for working capital.

Positive

• Additional $1.41 million raised through full exercise of over-allotment option
• Total IPO proceeds reached $10.78 million, strengthening company's capital position
• Funds will support expansion into new business areas including asset management and equity capital markets

Negative

• Potential dilution for existing shareholders from additional shares issued

Insights

Capital Markets Specialist

Grande Group's IPO over-allotment exercise adds $1.4M to their $10.78M total raise, signaling strong initial market demand.

Grande Group Limited has announced the full exercise of the underwriter's over-allotment option, generating an additional $1.4 million in gross proceeds and bringing their total IPO raise to approximately $10.78 million. This is a positive signal for the newly public company, as it indicates strong initial demand for their shares following their July 1st Nasdaq debut.

The full exercise of this option (often called a 'greenshoe') demonstrates that the underwriter, Cathay Securities, believes there was sufficient market interest to support additional share placement beyond the initial offering. When underwriters exercise these options, it typically suggests the IPO was well-received and shares traded favorably in the immediate aftermarket.

The pricing held steady at $5.00 per share, indicating stability in the perceived valuation. The company's stated use of proceeds focuses on four strategic areas: strengthening their corporate finance advisory business, developing asset management capabilities, establishing equity capital market services, and general working capital needs. This capital allocation strategy suggests GRAN is pursuing both core business reinforcement and service expansion.

For a Hong Kong-based financial services firm like Grande Group, which specializes in corporate finance advisory and IPO sponsorship services, this successful capital raise provides a meaningful foundation to execute their growth initiatives in competitive Asian financial markets. The relatively modest raise size ($10.78 million) reflects the company's current scale, but gives them resources to potentially accelerate their development trajectory.

Hong Kong, July 14, 2025 (GLOBE NEWSWIRE) -- GRANDE GROUP LIMITED (“GRAN” or the “Company”) (Nasdaq: GRAN), a Hong Kong-based financial services provider which principally engages in the provision of corporate finance advisory services and IPO sponsor services through its Hong Kong subsidiary, Grande Capital Limited, today announced the full exercise of the over-allotment option (the “Over-allotment”) by the underwriter (the “Underwriter”) of its initial public offering (the “Offering”) to purchase an additional 281,250 Class A ordinary shares (the “Class A Ordinary Shares”) of the Company at the public offering price of US$5.00 per share and the closing of such issuance.

The Class A Ordinary Shares commenced trading on the Nasdaq Capital Market on July 1, 2025, under the ticker symbol “GRAN.”

The gross proceeds from this Over-allotment closing were US$1,406,250 and the aggregate gross proceeds from the Offering increased to approximately US$10.78 million, before deducting underwriting discounts and other offering expenses.

The Company intends to use the net proceeds from the Offering for strengthening the corporate finance advisory business, developing the asset management business, establishing equity capital market services, and general working capital purposes.

The Offering was conducted on a firm commitment basis. Cathay Securities, Inc. acted as the Underwriter for the Offering. Ortoli Rosenstadt LLP acted as the U.S. securities counsel to the Company. Ogier acted as the British Virgin Islands legal counsel to the Company. Loong & Yeung and David Fong & Co. acted as the Hong Kong legal counsels to the Company. WWC, P.C. acted as the independent registered public accounting firm of the Company.  Hunter Taubman Fischer & Li LLC acted as the U.S. securities counsel to the Underwriter, in connection with the Offering.

The Offering was conducted pursuant to the Company’s Registration Statement on Form F-1 (File No. 333-283705) previously filed with, and subsequently declared effective on June 30, 2025 by the U.S. Securities and Exchange Commission (the “SEC”). The Offering was made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, when available, from Cathay Securities, Inc.: 40 Wall St Suite 3600, New York, NY 10005, United States, Attention: Shell Li, or via email at service@cathaysecurities.com or telephone at +1 (855) 939-3888, or 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 has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and no sale of these securities may be made 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 any such state or other jurisdiction.

About Grande Group Limited

Through its Hong Kong subsidiary, Grande Capital Limited, Grande Group Limited is a Hong Kong-based financial services provider which principally engages in the provision of corporate finance advisory services and IPO sponsor services. Grande Capital Limited is licensed with the Securities and Futures Commission of Hong Kong (“HKSFC”) to engage in Type 1 (dealing in securities) and Type 6 (advising on corporate finance) regulated activities in Hong Kong. For more information, please visit: https://grande-capital.com/

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Grande Group Limited Investor Relations Contact:
Christensen Advisory
Joanna Quan
Email: grande.capital@christensencomms.com
Tel: +86-10-5900-1548

FAQ

What was the total amount raised in Grande Group's (GRAN) IPO including over-allotment?

Grande Group raised total gross proceeds of $10.78 million, including $1.41 million from the full exercise of the over-allotment option.

What is the IPO price for Grande Group (GRAN) shares?

Grande Group's IPO price was set at $5.00 per Class A ordinary share.

When did Grande Group (GRAN) begin trading on Nasdaq?

Grande Group began trading on the Nasdaq Capital Market on July 1, 2025, under the ticker symbol GRAN.

How will Grande Group (GRAN) use its IPO proceeds?

The company will use proceeds to strengthen corporate finance advisory business, develop asset management operations, establish equity capital market services, and for general working capital.

Who was the underwriter for Grande Group's (GRAN) IPO?

Cathay Securities, Inc. acted as the underwriter for Grande Group's IPO.