Haoxi Health Technology Limited Announces Pricing of Its Initial Public Offering
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Insights
The initial public offering (IPO) of Haoxi Health Technology Limited represents a significant capital market event, particularly for investors and stakeholders in the technology and health sectors. The pricing of the IPO at $4.00 per share is a critical factor, as it sets the market capitalization of the company and provides an indication of the valuation that the investment community is willing to assign to the company's future growth prospects.
Investors will scrutinize the use of proceeds from the $9.6 million raised, as these funds are typically earmarked for strategic initiatives such as research and development, marketing efforts and potential expansion. The firm commitment basis of the offering suggests a strong vote of confidence from the underwriter, EF Hutton, in the company's potential. However, the performance of the stock post-IPO will be closely monitored to assess market sentiment and the sustainability of the initial valuation.
Moreover, the over-allotment option provided to EF Hutton is a common hedging tool used in IPOs to manage stock price volatility post-listing. If EF Hutton exercises this option, it could provide additional capital to Haoxi Health Technology but also may dilute existing shareholders. The short-term stock performance often reflects the market's immediate reaction to the IPO pricing and initial trading days, while the long-term value will be more dependent on the company's operational performance and market conditions.
As Haoxi Health Technology Limited enters the Nasdaq Capital Market, it's important to understand the competitive landscape of online marketing solutions in the health technology space. The success of the IPO could be indicative of investor appetite for new entries in this sector, which has seen significant growth due to increased digitalization in healthcare and the shift towards online platforms for marketing and customer engagement.
Assessing the company's market position, proprietary technology and competitive differentiators will be key in determining its long-term success. The pricing of the IPO could reflect how the market perceives Haoxi's potential to capture market share and scale its operations. Additionally, the company's strategic plans post-IPO, such as potential mergers or acquisitions, partnerships and international expansion, will be pivotal in maintaining momentum and creating shareholder value.
Industry norms for IPOs in the tech and health sectors often involve significant investor interest, given the high growth potential. However, it is also a sector where companies are expected to rapidly innovate and adapt to changing market demands. Haoxi's ability to keep pace with industry trends and consumer expectations will be a determining factor in its post-IPO performance.
The entry of Haoxi Health Technology Limited into the public market can be seen as a reflection of broader economic trends. The health technology sector is at the intersection of healthcare and information technology—two industries that have shown resilience and growth even in times of economic uncertainty. This IPO could be a bellwether for investor confidence in these sectors, particularly in the context of the Chinese market.
From an economic perspective, the capital inflow from the IPO could enable Haoxi to leverage economies of scale, potentially reducing costs and improving profit margins over time. However, macroeconomic factors such as interest rate changes, trade policies and currency fluctuations could impact the company's financial performance and stock price. The timing of the IPO and the company's subsequent growth trajectory must be analyzed in the context of these external economic factors.
Additionally, the performance of Haoxi's IPO may influence the decisions of other companies considering going public, especially within the same sector. A successful offering could lead to increased IPO activity, while a lackluster performance might have a cooling effect. The impact of this IPO on the broader market and on the health technology sector will be observed by economists and market participants alike.
BEIJING, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Haoxi Health Technology Limited (the “Company” or “HAO”), an online marketing solution provider headquartered in Beijing, China, today announced the pricing of its initial public offering (the "Offering") of 2,400,000 Class A ordinary shares (the "Ordinary Shares") at a public offering price of
The Offering is being conducted on a firm commitment basis. The Company has granted EF Hutton LLC (“EF Hutton”), the underwriter, an option, within 45 days from the closing date of the Offering, to purchase up to an additional 360,000 Ordinary Shares at the Public Offering Price, less underwriting discounts, to cover the over-allotment option.
The Offering is expected to close on or about January 30, 2024, subject to the satisfaction of customary closing conditions.
EF Hutton is acting as the sole bookrunner for the Offering. Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the Company, and Pryor Cashman LLP is acting as U.S. counsel to EF Hutton, in connection with the Offering.
The Company intends to use the proceeds from this Offering for 1) working capital and general corporate purposes; 2) acquiring or investing in technologies, solutions, or businesses; and 3) hiring experienced employees.
The registration statement on Form F-1 (File No. 333-274214) relating to the Offering, as amended, was filed with the U.S. Securities and Exchange Commission (the "SEC") initially on August 25, 2023, and was declared effective by the SEC on January 25, 2024. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, from EF Hutton, Attn: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, or via email at syndicate@efhutton.com or telephone at (212) 404-7002. In addition, a copy of the final prospectus can also 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 shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these 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 any such state or jurisdiction.
About Haoxi Health Technology Limited
Haoxi Health Technology Limited is a Beijing-headquartered online marketing solution provider in China, specializing in serving healthcare industry advertiser clients. The Company’s growth is driven by the rise of news feed ads and the rapid development of the healthcare sector. The Company offers one-stop online marketing solutions, especially in online short video marketing, helping advertisers acquire and retain customers on popular platforms in China, such as Toutiao, Douyin, WeChat, and Sina Weibo. It is dedicated to reducing costs, increasing efficiency, and providing easy online marketing solutions to advertisers. For more information, please visit: http://ir.haoximedia.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. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. 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:
Underwriter
EF Hutton LLC
Ms. Stephanie Hu, Head of Asia, Investment Banking
Email：syndicate@efhutton.com
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
FAQ
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