MaxsMaking Inc. Announces Closing of Its $6.5 Million Initial Public Offering

Rhea-AI Summary

MaxsMaking (NASDAQ:MAMK), a manufacturer of customized consumer goods, has successfully completed its Initial Public Offering (IPO) of 1,625,000 A shares at $4.00 per share, raising gross proceeds of $6.5 million. The shares began trading on the Nasdaq Capital Market on July 7, 2025.

The company plans to allocate the proceeds strategically: 45% for production facilities construction, 20% for strategic investments, 15% for new hires, 12% for marketing, and 8% for R&D. Joseph Stone Capital, LLC served as the sole underwriter and has a 45-day option to purchase up to 243,750 additional shares.

Positive

• Successfully raised $6.5 million through IPO listing on NASDAQ
• Clear allocation strategy for proceeds with focus on growth and expansion
• Underwriter has option to purchase additional shares worth up to $975,000
• Majority of funds (45%) dedicated to production expansion

Negative

• Relatively small IPO size of $6.5 million may limit growth potential
• Significant portion (20%) allocated to undefined strategic investments carries execution risk
• Potential dilution if over-allotment option is exercised

Insights

Capital Markets Analyst

MaxsMaking's $6.5M IPO provides modest capital for expansion but faces challenges with its small offering size in a competitive consumer goods market.

MaxsMaking has completed its $6.5 million IPO, selling 1,625,000 A shares at $4.00 per share. The company began trading on the Nasdaq Capital Market under ticker MAMK on July 7, 2025. This represents a relatively small public offering in today's market environment.

The IPO's structure includes an over-allotment option allowing the underwriter to purchase up to an additional 243,750 shares within 45 days, potentially increasing proceeds by approximately $975,000. Joseph Stone Capital served as the sole underwriter on a firm commitment basis, indicating they purchased all shares from MaxsMaking before reselling to the public.

The capital allocation strategy reveals MaxsMaking's priorities: 45% for production facilities expansion, 20% for strategic investments/acquisitions, 15% for new hires, 12% for marketing, and 8% for R&D. This suggests an immediate focus on scaling manufacturing capabilities while pursuing inorganic growth opportunities.

For a manufacturer of customized consumer goods entering public markets, this represents a modest capital raise. The $4.00 share price positions it in the micro-cap category, which typically faces greater volatility and liquidity challenges. The company's ability to effectively deploy this capital to achieve meaningful scale will be critical, particularly with less than $3 million allocated to production expansion after accounting for offering expenses.

SHANGHAI, July 8, 2025 /PRNewswire/ -- MaxsMaking Inc. (the "Company" or "MaxsMaking") (NASDAQ:MAMK), a manufacturer of customized consumer goods with a focus on advanced technology and innovation, today announced the closing of its initial public offering (the "Offering") of 1,625,000 A shares, par value $0.01 per share (the "A Shares"), at a public offering price of $4.00 per share for gross proceeds of $6,500,000, before deducting underwriting discounts and offering expenses. The Offering closed on July 8, 2025, and the A Shares commenced trading on the Nasdaq Capital Market on July 7, 2025, under the ticker symbol "MAMK".

The Company has granted the underwriter an option, within 45 days from the closing date of the Offering, to purchase up to an additional 243,750 A Shares at the public offering price, less underwriting discounts, to cover the over-allotment option, if any.

The Offering was conducted on a firm commitment basis. Joseph Stone Capital, LLC acted as the sole underwriter for the Offering. Ellenoff Grossman & Schole LLP acted as U.S. counsel to the Company, and Davidoff Hutcher & Citron LLP acted as U.S. counsel to the underwriter, in connection with the Offering.

The Company intends to use approximately 45% of the proceeds from this Offering for construction of production facilities and expansion of its scale of production, approximately 20% for potential strategic investment and acquisitions, approximately 15% for new hires in the sales, IT, production and management departments, approximately 12% for marketing and the remaining approximately 8% for product and software research and development.

A registration statement on Form F-1 (File No. 333-283211) 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 July 3, 2025. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained from Joseph stone Capital, LLC: 585 Stewart Ave., Suite L60-C, Garden City, NY 11530, via email at corporatefinance@josephstonecapital.com or telephone at +1 (866) 866 1433. In addition, a copy of the final prospectus may 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 MaxsMaking Inc.

MaxsMaking Inc., founded in 2007 and headquartered in Shanghai, is a manufacturer of customized consumer goods with a focus on advanced technology and innovation. With production facilities in China's Zhejiang and Henan provinces, the Company integrates digital production, software development, product design, brand management, online sales and international trade to deliver small-batch textile customization services.

MaxsMaking offers a wide range of customizable products such as backpacks, shopping bags, aprons, and other promotional items. The Company uses sustainable raw materials and production methods and pays attention to environmental protection and social responsibility in the meantime. Through proprietary internet-based management software and proprietary order receiving and processing technologies, MaxsMaking aims to deliver high-quality, cost-effective products and services. For more information, please visit: https:// ir.maxsmaking.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 anticipated use of proceeds 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 Company's 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

Joseph Stone Capital, LLC
Email: corporatefinance@josephstonecapital.com
Tel: +1 (866) 866 1433

Investor Relations
WFS Investor Relations Inc.
Connie Kang
Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
      +1 628 283 9214

 

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SOURCE MaxsMaking Inc.

FAQ

How much did MaxsMaking (MAMK) raise in its IPO?

MaxsMaking raised $6.5 million in gross proceeds through its IPO, offering 1,625,000 A shares at $4.00 per share.

When did MAMK stock begin trading on NASDAQ?

MaxsMaking (MAMK) shares began trading on the Nasdaq Capital Market on July 7, 2025.

How will MaxsMaking use its IPO proceeds?

MaxsMaking will use 45% for production facilities, 20% for strategic investments, 15% for new hires, 12% for marketing, and 8% for R&D.

Who was the underwriter for MaxsMaking's IPO?

Joseph Stone Capital, LLC acted as the sole underwriter for the IPO.

What is the over-allotment option in MAMK's IPO?

The underwriter has a 45-day option to purchase up to 243,750 additional A shares at the public offering price of $4.00 per share.