K-Tech Solutions Company Limited Announces Pricing of US$6.4 Million Initial Public Offering

Rhea-AI Summary

K-Tech Solutions (NASDAQ:KMRK), a Hong Kong-based toy products design house specializing in infant and pre-school educational toys, has announced the pricing of its US$6.4 million initial public offering. The company is offering 1.6 million Class A Shares at US$4.00 per share, with trading expected to commence on July 16, 2025 on the NASDAQ Capital Market.

The company has granted a 30-day overallotment option for an additional 240,000 shares, potentially increasing total proceeds to US$7.36 million. Proceeds will fund investments in a Vietnamese factory, expand design teams, acquire international IP rights, and provide working capital. American Trust Investment Services is serving as the sole book-running manager for the offering.

Positive

• IPO provides access to US$6.4 million in capital for expansion
• Strategic plans to invest in manufacturing facilities in Vietnam/Southeast Asia
• Potential for geographic expansion and operational control through factory acquisition
• Focus on high-growth infant and pre-school educational toy market

Negative

• Relatively small IPO size may limit institutional investor interest
• Potential share dilution from overallotment option and underwriter warrants
• Competitive challenges in the established toy industry
• Manufacturing dependency on external facilities until factory acquisition

Insights

IPO Specialist

K-Tech Solutions prices $6.4M IPO at $4 per share with potential for $7.36M if overallotment exercised - funding Asian expansion and IP acquisitions.

K-Tech Solutions, a Hong Kong-based toy design house specializing in infant and pre-school educational toys, has priced its IPO at $4.00 per share, raising $6.4 million in gross proceeds. The offering consists of 1,600,000 Class A Shares with an additional 30-day option for underwriters to purchase 240,000 more shares, potentially bringing total proceeds to $7.36 million.

The company plans to begin trading on the NASDAQ Capital Market under ticker symbol KMRK on July 16, with the offering expected to close on July 17. American Trust Investment Services is serving as the sole book-running manager.

What's particularly notable is how K-Tech plans to use the proceeds: funding potential factory acquisitions in Vietnam or other Southeast Asian countries, expanding their design team, and obtaining licensed rights to international IP. This suggests a strategic shift to enhance both production capabilities and product offerings.

The relatively modest size of this IPO ($6.4 million) indicates this is a smaller player in the toy industry. However, the focus on educational toys - a high-growth segment of the market - combined with their expansion plans could position them well if executed properly. The planned Southeast Asian manufacturing investment likely aims to diversify their production base beyond China, mirroring broader industry trends of supply chain diversification.

The underwriter warrants (5% of shares at 125% of offering price) and overallotment provisions are standard IPO mechanisms but worth noting for their dilutive potential. The company will need to demonstrate strong growth metrics post-IPO to justify its valuation and sustain investor interest in what remains a competitive toy development market.

Hong Kong, July 15, 2025 (GLOBE NEWSWIRE) -- K-Tech Solutions Company Limited (“KMRK” or the “Company”) is an established toy products design house specialized in the development of infant and pre-school educational toys and learning kits. The Company is headquartered in Hong Kong to provide full-fledged product development solutions to toy brands throughout the entire development stage of toy products from design, prototype testing, production management, quality control to after-sales services. K-Tech Solutions Company Limited today announced the pricing of its firm commitment initial public offering of an aggregate 1,600,000 Class A Shares (the “Offering”) priced at US$4.00 per share (the “Offering Price”). In addition, the Company has granted the underwriter a 30-day option ("Overallotment") to purchase up to an additional 240,000 Class A Shares at the initial public offering price, less underwriting discounts and commissions.

The gross proceeds to the Company from the Offering (assuming that the Overallotment is not exercised), before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company, is expected to be approximately US$6,400,000.

The Company has granted the underwriter warrants, exercisable from the date of closing of the Offering and for a term of three years to purchase up to an additional 80,000 Class A Shares at 125% of the Offering Price, representing 5% of the Class A Shares issued in the Offering and the Over-allotment (the “Underwriters’ Warrants”).

Assuming that the Over-allotment is exercised, the Company may receive gross proceeds amounting up to US$7.36 million, before deducting underwriting discounts and commissions and estimated offering expenses.

The shares are expected to begin trading on the NASDAQ Capital Market under the ticker symbol “KMRK” on July 16, 2025. The Offering is expected to close on or about 17, 2025, subject to the satisfaction or waiver of customary closing conditions.

The Company intends to use the net proceeds from the Offering towards potential investments and/or acquisition of a factory in Vietnam and/or other South East Asian countries, expansion and recruitment of product designers and engineers, to obtain licensed rights to international IP, working capital, and other general corporate purposes.

American Trust Investment Services, Inc. (“ATIS”), a full-service broker/dealer, acted as the representative of the underwriters and sole book-running manager for the Offering. Loeb & Loeb LLP, CLKW Lawyers LLP, Beijing Dacheng Law Offices, LLP (Shenzhen) and Harney Westwood & Riegels are acting as U.S., Hong Kong, PRC and BVI legal counsels to the Company, respectively. Audit Alliance LLP is acting as the reporting accountants of the Company. DeMint Law, PLLC is acting as U.S. legal counsel to ATIS for the Offering.

The Offering is being conducted pursuant to the Company’s registration statement on Form F-1 (File No. 333-287391), as amended, previously filed with, and subsequently declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 30, 2025. The Offering is being made only by means of a prospectus, forming part of the registration statement. 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. Copies of the final prospectus related to the Offering may be obtained, when available, from American Trust Investment Services, Inc., 910 S. El Camino Real, Suite 200, San Clemente, California 92672, by phone at 949-347-5222 or by email at IB@amtruinvest.com. In addition, a copy of the final prospectus, when available, relating to the Offering may be obtained via the SEC’s website at www.sec.gov.

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 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 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 other jurisdiction.

About K-Tech Solutions Company Limited
We are principally engaged in the design, development, testing and sale of a diverse portfolio of toy products ranging from simple plastic toy products to more complex electromechanical toy products. Our solution services span across the entire development stage of toy products from design, prototype testing, production management, quality control to after-sales services. We specialize in the development of infant and pre-school educational toys and learning kits.

We started our operation in 2016 and have developed relationships with our customers mainly located in European and North American countries which possess renowned brands and intellectual properties in toy products. We have strong capability in product innovation, design and project management which allow us to provide product development solution to transform conceptual design into prototypes and further into commercialization of toy products. For more information, please visit https://www.k-mark.tech/

FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus 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. Any forward-looking statements contained in this press release speak only as of the date hereof, and K-Tech Solutions Company Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

For more information, please contact:
K-Tech Solutions Company Limited Investor Relations Contact:
Unit A, 7/F, Mai On Industrial Building
17-21 Kung Yip Street, Kwai Chung
New Territories, Hong Kong
Phone: (+852) 2741 3165
Email: johnnykwok@k-mark.com

Underwriters Inquiries:
American Trust Investment Services, Inc.
Kristopher Kessler, Managing Principal – Investment Banking
910 S. El Camino Real, Suite 200
San Clemente, California 92672
Phone: 949-347-5222
Email: IB@amtruinvest.com

FAQ

What is the IPO price for K-Tech Solutions (KMRK) shares?

K-Tech Solutions has priced its IPO at US$4.00 per share, offering 1.6 million Class A Shares.

When will KMRK stock begin trading on NASDAQ?

KMRK shares are scheduled to begin trading on the NASDAQ Capital Market on July 16, 2025.

How much money is K-Tech Solutions raising in its IPO?

K-Tech Solutions is raising US$6.4 million in the initial offering, with potential to increase to US$7.36 million if the overallotment option is exercised.

What will K-Tech Solutions use the IPO proceeds for?

The proceeds will be used for potential factory acquisition in Vietnam/Southeast Asia, expanding design teams, obtaining international IP rights, and working capital.

Who is the underwriter for the KMRK IPO?

American Trust Investment Services (ATIS) is acting as the representative of the underwriters and sole book-running manager for the offering.