Charming Medical Limited Announces Pricing of Initial Public Offering and Listing on Nasdaq

Rhea-AI Summary

Charming Medical (Nasdaq: MCTA) priced an initial public offering of 1,600,000 Class A ordinary shares at $4.00 per share, with expected gross proceeds of approximately $6.4 million. Shares are expected to begin trading on the Nasdaq Capital Market on October 21, 2025, and the offering is expected to close on or about October 22, 2025, subject to customary closing conditions.

The underwriters have a 45‑day over‑allotment option for an additional 240,000 shares (15%), which would raise gross proceeds to about $7.36 million. Net proceeds are intended for geographic expansion, strategic investments, R&D, and working capital.

Positive

• 1.6M shares offered at $4.00 per share
• Expected gross proceeds of $6.4M before expenses
• Listing scheduled on Nasdaq on October 21, 2025
• Over‑allotment option of 240,000 shares (15%)

Negative

• Potential dilution from 1.6M new shares
• Offering close contingent on customary conditions (risk of delay)
• Underwriting discounts and offering expenses will reduce net proceeds

Insights

Capital Markets Analyst

Charming Medical priced a Nasdaq IPO of 1.6M shares at $4.00, expected to raise ~$6.4 million.

The transaction converts a private TCM-focused business into a public company through a firm-commitment offering. Selling 1,600,000 Class A shares at $4.00 implies gross proceeds of about $6.4 million, rising to ~$7.36 million if the 45-day 15% over-allotment option is fully exercised.

The company plans to use net proceeds for geographic expansion, possible strategic investments and acquisitions, research and development, and general working capital. Key dependencies include successful closing on or about October 22, 2025, underwriting execution, and any exercise of the over-allotment option; each affects available cash and near-term execution capacity.

Risks are execution and financing dilution: the size of the raise is modest, so planned initiatives may require additional capital. Share supply from the offering and any option exercise will affect free float and short-term trading dynamics. Regulatory filings and prospectus disclosures will determine lock-up terms, use-of-proceeds detail, and material contingencies; those items will shape immediate market reception.

Watch for three concrete items over the next 45 days: whether the underwriters exercise the full 15% over-allotment, final net proceeds after underwriting discounts and expenses, and the company’s prospectus details on planned acquisitions and R&D spending timelines. These will clarify near-term funding adequacy and operational priorities within weeks to months.

HONG KONG, Oct. 21, 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 the pricing of its 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"). The Class A Ordinary Shares are expected to commence trading on the Nasdaq Capital Market on October 21, 2025, under the ticker symbol "MCTA". The Offering is expected to close on or about October 22, 2025, subject to the satisfaction of customary closing conditions.

The Company expects to receive an aggregate of gross proceeds of approximately $6.4 million from the Offering, before deducting underwriting discounts and other offering expenses. Additionally, the Company has granted the underwriters an over-allotment option to purchase up to an additional 240,000 Class A Ordinary Shares at the Public Offering Price, representing 15% of the Class A Ordinary Shares sold in the Offering (the "Over-allotment Option"), exercisable within 45 days from the closing date of the Offering. If the Over-allotment Option is exercised in full, the gross proceeds will amount to approximately $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 is conducted on a firm commitment basis. Cathay Securities, Inc. is acting as the representative of the underwriters for the Offering. Ortoli Rosenstadt LLP, Harney Westwood & Riegels, and Fairbairn Catley Low & Kong are acting as United States, British Virgin Islands and Hong Kong SAR counsels to the Company, respectively. Kaufman & Canoles, P.C. is acting as U.S. counsel to the underwriters for the Offering.

The Offering is being 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. The Offering is being made only by means of a prospectus, forming a part of the effective registration statement. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. 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. In addition, copies of the final prospectus relating to the Offering, when available, 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 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 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 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

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 Class A Ordinary Shares on the Nasdaq Capital Market, the timing and completion of the Offering, the satisfaction of closing conditions, the exercise of the over-allotment option, the amount of proceeds to be received, the Company's intended use of proceeds, 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.

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SOURCE Charming Medical Limited

FAQ

When will Charming Medical (MCTA) start trading on Nasdaq?

Shares are expected to commence trading on October 21, 2025 under ticker MCTA.

How many shares did Charming Medical (MCTA) offer and at what price?

The offering is 1,600,000 Class A shares priced at $4.00 per share.

How much gross capital will Charming Medical (MCTA) raise from the IPO?

Gross proceeds are expected to be about $6.4 million, or $7.36 million if the 15% over‑allotment is exercised.

What will Charming Medical (MCTA) use the IPO proceeds for?

Proceeds are intended for business and geographic expansion, strategic investments, R&D, and general working capital.

Who are the underwriters and counsels for Charming Medical (MCTA) IPO?

Cathay Securities is the representative underwriter; U.S. and BVI/Hong Kong counsels were named in the offering materials.

When is the expected closing date for Charming Medical (MCTA) offering?

The offering is expected to close on or about October 22, 2025, subject to customary closing conditions.