LZ Technology Holdings Limited Announces Underwriters’ Full Exercise of Over-Allotment Option

Rhea-AI Summary

LZ Technology Holdings (NASDAQ: LZMH) announced that underwriters have fully exercised their over-allotment option to purchase an additional 270,000 Class B ordinary shares at $4.00 per share, generating extra gross proceeds of $1,080,000.

Following this exercise, the total IPO size increased to 2,070,000 Class B ordinary shares with gross proceeds reaching $8.28 million before deducting underwriter discounts and expenses. The company's shares began trading on the Nasdaq Capital Market on February 27, 2025, under 'LZMH'.

Benjamin Securities, Inc. and D. Boral Capital served as underwriters, with Bevilacqua PLLC and Hunter Taubman Fischer & Li acting as respective legal counsels.

Positive

• Successfully completed IPO with full exercise of over-allotment option
• Raised additional $1.08 million through over-allotment option
• Total gross proceeds of $8.28 million from IPO
• Achieved Nasdaq Capital Market listing

Negative

• Potential dilution of existing shareholders due to additional share issuance

Insights

Financial Analyst

The full exercise of LZ Technology's overallotment option represents a significant positive signal for this newly public company. The underwriters purchased an additional $1.08 million worth of shares (270,000 Class B ordinary shares at $4.00 each), bringing total IPO proceeds to approximately $8.28 million before expenses.

This complete exercise of the greenshoe option indicates strong institutional demand exceeded initial offering availability - an encouraging vote of confidence from sophisticated market participants. For a company that only began trading on February 27th, this additional capital infusion strengthens LZ Technology's balance sheet at a important early stage.

What's particularly notable is the current trading price of $8.00 per share, representing a 100% premium to the $4.00 IPO price in just two weeks. This price action suggests the market sees significant value beyond the initial offering valuation, though typical post-IPO volatility should be expected.

For an information technology and advertising company entering public markets, this additional $1.08 million provides valuable financial flexibility to pursue growth initiatives, especially important in these capital-intensive, competitive sectors. The successful listing and subsequent overallotment exercise positions LZ Technology with stronger financial footing than initially anticipated.

HUZHOU CITY, China, March 11, 2025 (GLOBE NEWSWIRE) -- LZ Technology Holdings Limited (NASDAQ: LZMH) (“LZ Technology” or the “Company”), an information technology and advertising company, today announced the underwriters of its initial public offering (the "Offering") have exercised their over-allotment option in full to purchase an additional 270,000 Class B ordinary shares at the public offering price of US$4.00 per share, resulting in additional gross proceeds of $1,080,000. After giving effect to the full exercise of the over-allotment option, the total number of Class B ordinary shares sold by the Company in the public offering increased to 2,070,000 Class B ordinary shares and the gross proceeds increased to approximately US$8.28 million, before deducting underwriter discounts and other related expenses. The option closing date was March 11, 2025. The Class B ordinary shares began trading on the Nasdaq Capital Market on February 27, 2025, under the ticker symbol "LZMH."

Benjamin Securities, Inc. and D. Boral Capital LLC acted as underwriters for the offering (the “Underwriters”). Bevilacqua PLLC acted as U.S. securities counsel to the Company, and Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to the Underwriters in connection with the offering.

A registration statement on Form F-1 (File No. 333-276234) 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 February 26, 2025. The offering was made only by means of a prospectus, forming part of the registration statement. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, copies of the final prospectus relating to the offering may be obtained from Benjamin Securities, Inc. by email at info@benjaminsecurities.com, by standard mail to 3 West Garden Street, Suite 407, Pensacola, FL 32502, or by telephone at +1 (516) 931-1090; or from D. Boral Capital LLC by standard mail to D. Boral Capital LLC, 590 Madison Ave 39th Floor, New York, NY 10022, or by email at info@dboralcapital.com, or by telephone at +1(212)-970-5150.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the 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 LZ Technology Holdings Limited
LZ Technology Holdings Limited is an information technology and advertising company operating through its subsidiaries in China. The Company’s business spans three key verticals: Smart Community, Out-of-Home Advertising, and Local Life. Its Smart Community services provide intelligent access control and safety management systems, installed in thousands of residential communities in China. Its Out-of-Home Advertising division offers multi-channel advertising solutions through a vast network of monitors across approximately 120 cities in China, with ad placements on access control screens, SaaS platforms, and third-party advertising spaces. The Company’s Local Life vertical connects businesses with consumers through online promotions, social media marketing, and retail sales of various products and services. LZ Technology is committed to providing high-quality services to communities and businesses.

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” as defined under the federal securities laws. 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. Investors can find many (but not all) of these statements by the use of words such as “believe”, “plan”, “expect”, “intend”, “should”, “seek”, “estimate”, “will”, “aim” and “anticipate”, or other similar expressions in this press release. 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. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For further information, please contact:

Michael Wu
Investor Relations
LZ Technology Holdings Limited
michael@lzmh.co

FAQ

How much did LZMH raise in total from its IPO including the over-allotment option?

LZMH raised total gross proceeds of $8.28 million, including $1.08 million from the over-allotment option exercise at $4.00 per share.

When did LZMH stock begin trading on the Nasdaq?

LZMH began trading on the Nasdaq Capital Market on February 27, 2025.

How many additional shares were sold through LZMH's over-allotment option?

The underwriters purchased an additional 270,000 Class B ordinary shares through the over-allotment option.

What was the total number of Class B ordinary shares sold in LZMH's public offering?

The total number of Class B ordinary shares sold in the offering was 2,070,000 shares.