Magnitude International Ltd Announces Pricing of Initial Public Offering

Rhea-AI Summary

Magnitude International Ltd (Nasdaq: MAGH), a Singapore-based electrical installation service provider, has announced the pricing of its initial public offering of 2,200,000 ordinary shares at $4.00 per share, raising total gross proceeds of $8.8 million.

The IPO consists of 1,650,000 shares offered by the company and 550,000 shares from an existing shareholder. Trading is set to commence on August 12, 2025, on the Nasdaq Capital Market under the symbol "MAGH". The company plans to use the proceeds for strategic acquisitions, materials purchase, workforce expansion, facility upgrades, and digital transformation initiatives.

Positive

• IPO will raise $8.8 million in gross proceeds for company expansion
• Strategic use of proceeds includes acquisitions, workforce expansion, and digital transformation
• Listing on Nasdaq Capital Market provides access to broader investor base
• Company retains majority (75%) of offered shares, with only 25% from existing shareholder

Negative

• Relatively small IPO size of $8.8 million may limit growth potential
• Selling shareholder's participation could signal partial exit
• Competitive electrical installation market may challenge growth plans

Insights

IPO & Financial Analyst

Singapore-based Magnitude International priced its IPO at $4.00 per share, raising $8.8M gross to fund expansion and operations.

Magnitude International, a Singapore-based electrical installation service provider, has priced its initial public offering at $4.00 per share. The company is offering 1,650,000 ordinary shares while an existing shareholder is selling 550,000 shares, bringing the total offering to 2,200,000 shares with gross proceeds of $8.8 million before underwriting discounts and expenses.

This is a relatively small IPO compared to typical Nasdaq listings, which may indicate limited initial institutional interest or a focused capital-raising strategy. The company will net approximately $6.6 million from its portion of the offering (excluding the selling shareholder's shares), assuming standard underwriting fees of around 7%.

Magnitude plans to use the proceeds strategically for multiple growth initiatives:

• Funding strategic acquisitions and joint ventures
• Purchasing materials for operations
• Expanding workforce capacity
• Relocating to larger headquarters with improved storage
• Securing better worker accommodations
• Implementing digital transformation including ERP and HR systems

The company's decision to list on the Nasdaq Capital Market rather than on Singapore's exchange suggests ambitions to access U.S. capital markets and potentially expand beyond its current regional focus. Trading under ticker symbol "MAGH" is expected to commence on August 12, with the offering closing around August 13, subject to standard closing conditions.

Bancroft Capital is serving as the sole underwriter, which is a smaller investment bank compared to the bulge bracket firms that typically lead larger IPOs. This further supports the assessment that this is a modest-sized offering targeting specific growth objectives rather than a major market debut.

Singapore, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Magnitude International Ltd (the “Company” or “Magnitude”) (Nasdaq: MAGH), an electrical installation service provider based in Singapore, today announced the pricing of its initial public offering (the “Offering”) of an aggregate of 2,200,000 ordinary shares at a public offering price of $4.00 per share, for total gross proceeds of $8.8 million, before deducting underwriting discounts and offering expenses. The Company is offering 1,650,000 ordinary shares and an existing shareholder is offering 550,000 ordinary shares. The Company will not receive any proceeds from the sale of ordinary shares by the selling shareholder.

The Company’s ordinary shares are expected to being trading on the Nasdaq Capital Market, or Nasdaq, on August 12, 2025, under the symbol “MAGH.” The Offering is expected to close on or about August 13, 2025, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the Offering for: (i) expansion and growth through strategic acquisitions, joint ventures and/or strategic alliances; (ii) the purchase of materials; (iii) expansion of our workforce; (iv) moving to a bigger head office to provide more office area and additional storage facilities; (v) rental of a bigger dormitory for our foreign workers; (vi) digitalizing our systems, upgrading existing equipment, and investing in software solutions like enterprise resource planning (ERP) systems, and human resource (HR) systems; and (vii) working capital and general corporate purposes.

Bancroft Capital, LLC is acting as sole underwriter for the Offering. Concord & Sage PC is acting as U.S. legal counsel to the Company, and Taft Stettinius & Hollister LLP is acting as U.S. legal counsel to Bancroft Capital, LLC.

The Offering is being conducted pursuant to the Company’s registration statement on Form F-1, as amended (File No. 333-287609), which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on July 30, 2025. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Electronic copies of the final prospectus relating to the Offering, when available, may be obtained by visiting the SEC’s website located at http://www.sec.gov or by contacting Bancroft Capital, LLC, 501 Office Center Drive, Suite 130, Fort Washington, PA 19034, Attention: Jason Diamond or email: investmentbanking@bancroft4vets.com or by telephone at +1 (484) 546-8000.

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 there be any offer, solicitation or sale of such 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 Magnitude International Ltd

Magnitude International Ltd is a Singapore-based electrical installation service provider to both the private and public sectors. Founded in 2012, the Company has over 12 years of experience in providing services such as the installation of generators, transformers, and various types of alteration and addition works, including the rewiring and installation of solar panel systems. The Company primarily acts as the main electrical contractor in construction projects and has participated in a range of greenfield and brownfield electrical installation projects. Its mission is to become one of the leading integrated one-stop electrical installation services providers in Singapore, and to add value to all stakeholders by ensuring that all buildings serviced by the Company are safe, functional and energy efficient.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. 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, including the expectation that the proposed Offering will be successfully completed. 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 the prospectus. 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, which are available for review at www.sec.gov.

For more information, please contact:

Magnitude International Ltd

Mr. Lim Say Wei

Email swlim@bnlengrg.com

Underwriter Contact:

Bancroft Capital, LLC,

501 Office Center Drive, Suite 130

Fort Washington, PA 19034

Email: investmentbanking@bancroft4vets.com

FAQ

What is the IPO price for Magnitude International (MAGH) shares?

Magnitude International has priced its IPO at $4.00 per share, offering a total of 2,200,000 ordinary shares.

When will Magnitude International (MAGH) start trading on Nasdaq?

Magnitude International (MAGH) is scheduled to begin trading on the Nasdaq Capital Market on August 12, 2025.

How much money is Magnitude International (MAGH) raising in its IPO?

The company is raising $8.8 million in gross proceeds, with 1,650,000 shares offered by the company and 550,000 shares from an existing shareholder.

How will Magnitude International (MAGH) use its IPO proceeds?

The proceeds will be used for strategic acquisitions, materials purchase, workforce expansion, facility upgrades, digital transformation, and general corporate purposes.

Who is the underwriter for Magnitude International's (MAGH) IPO?

Bancroft Capital, LLC is acting as the sole underwriter for Magnitude International's IPO.