Charming Medical Limited Announces Full Exercise of Representative's Over-allotment Option

Rhea-AI Summary

Charming Medical (Nasdaq: MCTA) announced full exercise of the underwriters' 15% over-allotment option, adding 240,000 Class A ordinary shares at the public offering price of $4.00 per share. The over-allotment generated gross proceeds of $0.96 million, bringing aggregate gross proceeds from the initial public offering to approximately $7.36 million before underwriting discounts and offering expenses.

The company's Class A ordinary shares began trading on the Nasdaq Capital Market on October 21, 2025. The company said it intends to use net proceeds for business expansion, strategic investments and acquisitions, research and development, and general working capital.

Positive

• Over-allotment proceeds of $0.96 million
• Aggregate gross proceeds increased to $7.36 million
• Shares commenced trading on Nasdaq on Oct 21, 2025

Negative

• Share dilution: 240,000 additional shares (15% of the 1.6M offering)
• Proceeds stated before underwriting discounts and offering expenses

Insights

Capital Markets Analyst

Overallotment exercise raises proceeds to $7.36 million, signaling solid underwriting demand for the IPO.

Charming Medical Limited completed its Offering of 1,600,000 Class A shares at $4.00 per share and the underwriters exercised the full 240,000-share over-allotment, adding $0.96 million in gross proceeds and bringing total gross proceeds to approximately $7.36 million.

The business impact is straightforward: the full exercise increases available capital for stated uses such as geographic expansion, strategic investments, R&D, and working capital while leaving underwriting structure unchanged. Key dependencies include effective cash deployment and the company filing and compliance obligations tied to its Form F-1 declared effective on September 30, 2025.

Watch near-term items: realization of stated uses of proceeds, any disclosure on timing or targets for acquisitions or R&D, and trading liquidity following the October 21, 2025 Nasdaq listing. Expect meaningful updates within the next several quarters if funds are deployed or deals are announced.

HONG KONG, Oct. 28, 2025 /PRNewswire/ -- Charming Medical Limited (Nasdaq: MCTA) (the "Company"), a Hong Kong-based provider of Traditional Chinese Medicine (TCM)-inspired therapies and products, today announced, in connection with its previously announced initial public offering (the "Offering") of 1,600,000 Class A ordinary shares, par value $0.0001 per share (the "Class A Ordinary Shares") at a price of $4.00 per share (the "Public Offering Price"), Cathay Securities, Inc., the representative of the underwriters (the "Representative") of the Offering, has exercised its over-allotment option (the "Over-allotment") in full to purchase an additional 240,000 Class A Ordinary Shares at the Public Offering Price, and the closing of such issuance.

The Class A Ordinary Shares of the Company commenced trading on the Nasdaq Capital Market on October 21, 2025, under the ticker symbol "MCTA." The gross proceeds from this Over-allotment closing were US$0.96 million and the aggregate gross proceeds from the Offering increased to approximately US$7.36 million, before deducting underwriting discounts and other offering expenses. The Company intends to use the net proceeds from the Offering for expanding its business and geographic coverage, potential strategic investments and acquisitions, research and development, and for general working capital and corporate purposes.

The Offering was conducted on a firm commitment basis. Cathay Securities, Inc. acted as the representative of the underwriters for the Offering. Ortoli Rosenstadt LLP, Harney Westwood & Riegels, and Fairbairn Catley Low & Kong acted as United States, British Virgin Islands and Hong Kong counsels to the Company, respectively. Kaufman & Canoles, P.C. acted as U.S. counsel to the underwriters for the Offering.

The Offering was conducted pursuant to the Company's registration statement on Form F-1 (File No. 333-287258), as amended, previously filed with, and subsequently declared effective by the United States Securities and Exchange Commission (the "SEC") on September 30, 2025. A final prospectus describing the terms of the Offering was filed with the SEC and is available on the SEC's website at www.sec.gov. The Offering was made only by means of a prospectus, forming a part of the effective registration statement. Alternatively, electronic copies of the prospectus relating to the Offering may be obtained from Cathay Securities, Inc., by standard mail to 40 Wall St., Suite 3600, New York, NY 10005, United States, Attention: Shell Li, or via email at service@cathaysecurities.com, or telephone at +1 (855) 939-3888.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Charming Medical Limited (Nasdaq: MCTA)

Charming Medical Limited (the "Company") is a Hong Kong-based provider of Traditional Chinese Medicine (TCM)-inspired therapies and products. The Company integrates TCM principles with modern technology to enhance quality of life and promote holistic well-being. Through its four wellness centers in Hong Kong, the Company offers a wide range of services, including womb-warming therapy, pelvic detox therapy, moxibustion, prenatal massage, and traditional abdominal binding, designed to address women's health issues such as menstrual irregularities, hormonal imbalance, and postpartum recovery. Under its "Beauty Lab" brand, Charming Medical Limited also develops and distributes TCM-inspired supplements and beauty products, such as uterine care patches, probiotic washes, and nourishing herbal formulations, aimed at improving women's constitution and vitality. In addition, the Company provides technical training, dietary therapy consultancy, and franchise opportunities to extend its wellness philosophy to other practitioners and entrepreneurs. For more information, please visit https://charmingmed.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 intended use of proceeds from the sale of the Company's Class A Ordinary Shares in 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 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.

 

 

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SOURCE Charming Medical Limited

FAQ

What did Charming Medical (MCTA) announce on October 28, 2025 about the IPO over-allotment?

The company said the underwriters fully exercised a 240,000-share over-allotment at $4.00 per share, producing $0.96M gross proceeds.

How much total gross proceeds did Charming Medical (MCTA) raise after the over-allotment?

Aggregate gross proceeds increased to approximately $7.36 million, before underwriting discounts and offering expenses.

When did Charming Medical (MCTA) begin trading on Nasdaq and under what ticker?

Class A ordinary shares commenced trading on the Nasdaq Capital Market on October 21, 2025 under the ticker MCTA.

How will Charming Medical (MCTA) use the net proceeds from the offering?

The company intends to use net proceeds for business and geographic expansion, strategic investments and acquisitions, R&D, and general working capital.

Who acted as representative of the underwriters for Charming Medical's (MCTA) offering?

Cathay Securities, Inc. served as the representative of the underwriters for the offering.