Lianhe Sowell International Group Ltd Announces Pricing of Initial Public Offering

Rhea-AI Summary

Lianhe Sowell International Group, a Chinese machine vision solutions provider, has announced the pricing of its Initial Public Offering (IPO) on the Nasdaq Capital Market. The company is offering 2,000,000 ordinary shares at $4.00 per share, expecting to raise $8 million in gross proceeds before deductions.

Trading will commence on April 3, 2025, under the symbol LHSW, with the offering expected to close on April 4, 2025. The company has granted underwriter R.F. Lafferty & Co. an over-allotment option for additional 300,000 shares.

The IPO proceeds will fund:

• Investment in machine vision business and R&D
• Expansion of spray painting robot business, including production equipment for Nine-Axis Linkage Spray Painting Robots
• General corporate purposes and working capital

Positive

• IPO provides $8 million in new capital for business expansion
• Nasdaq Capital Market listing enhances company visibility and trading access
• Funds allocated for R&D and new product development
• Strategic expansion into Nine-Axis Linkage Spray Painting Robots production

Negative

• Potential shareholder dilution from 2,000,000 new shares
• Additional dilution possible from 300,000 share over-allotment option
• Small IPO size may indicate market interest
• Competitive challenges in machine vision and robotics markets

Insights

Financial Analyst

Lianhe Sowell's $8 million IPO represents a modest capital raise for a technology company entering U.S. public markets. At $4.00 per share for 2 million ordinary shares, this offering is structured as a firm commitment, meaning the underwriter has fully committed to purchasing all shares - providing certainty for the issuing company amid current market conditions.

The company's listing on the Nasdaq Capital Market (rather than the Global Market) aligns with its smaller capitalization profile. The additional 15% over-allotment option of 300,000 shares could potentially increase total proceeds to $9.2 million if fully exercised.

The allocation of proceeds signals the company's strategic priorities: enhancing its core machine vision capabilities, expanding into spray painting robotics manufacturing with a planned production line for Nine-Axis Linkage Spray Painting Robots, and strengthening working capital. This dual-focus strategy demonstrates investment in both existing technology and manufacturing capabilities expansion.

The single underwriter structure (R.F. Lafferty & Co.) rather than a larger banking syndicate is consistent with the offering's size. While the IPO represents an important capital formation event, the relatively modest proceeds will require disciplined capital allocation to achieve the stated expansion objectives across multiple business initiatives.

Technology Industry Expert

Lianhe Sowell's public debut provides investors access to China's growing machine vision sector, where automated visual inspection and analysis systems are increasingly critical across manufacturing and quality control applications. The company characterizes itself as providing "machine vision products and solutions applied in a wide range of businesses across industries in China," indicating a horizontal market approach rather than vertical specialization.

The company's expansion into spray painting robotics, specifically Nine-Axis Linkage Spray Painting Robots, represents a logical adjacent market. These specialized robots require precise motion control and vision capabilities, potentially leveraging the company's core technology competencies. The planned investment in an in-house production and assembly line indicates vertical integration ambitions that could improve margins and quality control.

Machine vision represents a technically challenging field requiring continuous R&D investment to maintain competitiveness. The company's allocation of IPO proceeds specifically for "research and development for new products and relevant market expansion" acknowledges this reality. However, the proceeds will require highly focused R&D initiatives to achieve meaningful market advancement.

The dual focus on both machine vision technology and specialized robotics manufacturing suggests Lianhe Sowell is positioning itself at the intersection of software and hardware in industrial automation, potentially creating differentiation in a crowded market landscape.

Shenzhen, China, April 03, 2025 (GLOBE NEWSWIRE) -- Lianhe Sowell International Group Ltd (the “Company”), a provider of machine vision products and solutions applied in a wide range of businesses across industries in China, today announced the pricing of its initial public offering (the “Offering”) of 2,000,000 ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share. The Offering is being conducted on a firm commitment basis. The Company expects to receive aggregate gross proceeds of $8 million, before deducting underwriting discounts and other offering expenses. The Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on April 3, 2025, under the ticker symbol “LHSW”. The Offering is expected to close on April 4, 2025, subject to the satisfaction of customary closing conditions. In addition, the Company has granted the underwriter an option (the "Over-Allotment Option") to purchase up to an additional 300,000 Ordinary Shares at the public offering price within 30 days from the closing date of the Offering.

The net proceeds from the Offering will be used for (i) investment in machine vision business, research and development for new products and relevant market expansion; (ii) expansion of the spray painting robot business, including the preliminary installation of production equipment and machineries of an in-house production and assembly line for production of Nine-Axis Linkage Spray Painting Robots; and (iii) general corporate purposes and working capital. R.F. Lafferty & Co., Inc. is acting as sole underwriter for the Offering.

A registration statement on Form F-1 (File No. 333-279303) relating to the Offering, as amended, has been filed with the U.S. Securities and Exchange Commission (the “SEC“) and was declared effective by the SEC on March 31, 2025. The Offering is being made only by means of a prospectus. Copies of the prospectus related to the Offering may be obtained, when available, from R. F. Lafferty & Co., Inc. by standard mail to R. F. Lafferty & Co., Inc., 40 Wall Street, 27^th Floor, New York, NY 10005, or via email at offerings@rflafferty.com or by telephone at +1 (212) 293-9090. In addition, a copy of the prospectus relating to the Offering, when available, 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 has been prepared for informational purposes only and 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 Lianhe Sowell International Group Ltd

Lianhe Sowell International Group Ltd (Nasdaq: LHSW) provides industrial vision and industrial robotics solutions. With expertise in the field of machine vision and intelligent equipment, the Company specializes in smart transportation, industrial automation, artificial intelligence, and machine vision. Committed to offering comprehensive intelligent solutions to customers worldwide, the Company continuously advances the intelligent transformation of various industries through technological innovation.
For more information, please visit: http://www.sowellrobot.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
R. F. Lafferty & Co., Inc.
40 Wall Street, 27th Floor
New York, NY 10005
(212) 293-9090
offerings@rflafferty.com

Investor Relations
WFS Investor Relations Inc.
Janice Wang
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

FAQ

What is the IPO price and size for Lianhe Sowell (LHSW)?

Lianhe Sowell's IPO consists of 2,000,000 ordinary shares priced at $4.00 per share, totaling $8 million in gross proceeds.

When will LHSW stock begin trading on Nasdaq?

LHSW will commence trading on the Nasdaq Capital Market on April 3, 2025.

How will Lianhe Sowell use its IPO proceeds?

Proceeds will fund machine vision business investment, R&D, spray painting robot business expansion, and general corporate purposes.

What is the over-allotment option for LHSW's IPO?

The underwriter has a 30-day option to purchase up to 300,000 additional shares at the IPO price.

Who is the underwriter for Lianhe Sowell's IPO?

R.F. Lafferty & Co., Inc. is acting as the sole underwriter for the IPO.