Mega Fortune Company Limited Announces Pricing of $15 Million Initial Public Offering

Rhea-AI Summary

Mega Fortune Company (NASDAQ:MGRT), a Hong Kong-based IoT solution provider, has announced the pricing of its $15 million initial public offering. The company is offering 3,750,000 ordinary shares at $4.00 per share and will begin trading on the Nasdaq Capital Market on July 16, 2025.

The IPO includes a 45-day option for the underwriter to purchase up to an additional 562,500 ordinary shares at the public offering price. D. Boral Capital LLC is serving as the sole book-running manager for this firm commitment offering, which is expected to close around July 17, 2025.

Positive

• None.

Negative

• Potential shareholder dilution from new share issuance
• Additional dilution possible if underwriter exercises option
• Underwriting discounts and expenses will reduce actual proceeds

Insights

IPO Financial Analyst

Mega Fortune's $15M IPO enters Nasdaq at $4/share with modest raise reflecting cautious IoT market valuation trends.

Mega Fortune Company Limited has priced its IPO at $4.00 per share, raising $15 million in gross proceeds by offering 3,750,000 ordinary shares. The Hong Kong-based IoT solution provider will trade on the Nasdaq Capital Market under ticker "MGRT" starting July 16.

The $15 million raise represents a relatively modest IPO by current market standards, positioning MGRT in the micro-cap segment. For context, the underwriter (D. Boral Capital) has been granted a 45-day option to purchase an additional 562,500 shares, which could potentially increase proceeds by approximately $2.25 million if fully exercised.

This IPO employs a standard firm commitment structure where underwriters purchase all offered shares directly from the company, reducing MGRT's immediate capital risk. The use of a sole book-runner rather than a syndicate of underwriters typically indicates a smaller-scale offering with targeted institutional distribution.

The pricing suggests a conservative valuation approach, potentially reflecting either current investor sentiment toward IoT companies or MGRT's specific financial metrics and growth trajectory. Without revenue or profitability details, investors will need to evaluate the company's fundamentals through its SEC filings before determining whether the $4.00 entry point represents appropriate value.

Hong Kong, July 15, 2025 (GLOBE NEWSWIRE) -- Mega Fortune Company Limited (the “Company” or “MGRT”), an Internet of Things (“IoT”) solution provider in Hong Kong, today announced the pricing of its initial public offering (the “Offering”) of 3,750,000 ordinary shares at a price of $4.00 per share. The ordinary shares have been approved for listing on The Nasdaq Capital Market and are expected to commence trading on July 16, 2025 under the ticker symbol “MGRT.”

The aggregate gross proceeds from the Offering will be $15 million, before deducting underwriting discounts and other related expenses. The Offering is expected to close on or about July 17, 2025, subject to the satisfaction of customary closing conditions. MGRT has granted the underwriter a 45-day option to purchase up to an additional 562,500 ordinary shares at the public offering price, less underwriting discounts and commissions.

The Offering is being conducted on a firm commitment basis. D. Boral Capital LLC is acting as the sole book-running manager for the Offering. FisherBroyles, LLP is acting as U.S. securities counsel to the Company, and JunHe Law Offices LLC is acting as U.S. counsel to D. Boral Capital LLC in connection with the Offering.

A registration statement on Form F-1, as amended, relating to the Offering has been filed with the U.S. Securities and Exchange Commission (“SEC”) (File Number: 333-282977) and was declared effective by the SEC on June 30, 2025. The Offering is being made only by means of a final prospectus, forming a part of the registration statement. Copies of the prospectus relating to the Offering may be obtained, when available, from D. Boral Capital LLC, 590 Madison Avenue, 39^th Floor, New York, NY 10022 by email to dbccapitalmarkets@dboralcapital.com, or by calling +1 (212) 970 5150. In addition, the final prospectus will be filed with the SEC and will be available on the SEC’s website at http://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 does 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 any of the Company’s 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 Mega Fortune Company Limited

Mega Fortune Company Limited (the “Company”) is an Internet of Things (“IoT”) solution provider in Hong Kong. Through its operating subsidiary QBS System Limited (“QBS System”), the Company has specialized in delivering comprehensive IoT solutions and services across various industries. QBS System’s business service portfolio includes the provision of IoT Integration Solution Services, IoT Maintenance and Support services, Business Process Outsourcing (“BPO”) services and trading sales. Through its IoT platform, tools and services, QBS system helps enterprises through their digital transformation, launch IoT initiatives, upscale an existing IoT application or integrate any IoT solution with a legacy system to help them become more innovative, effective and productive. The Company’s vision is to become the preferred choice for IoT solutions for enterprises and projects in the Asia-Pacific region.

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 Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. 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:

Mega Fortune Company Limited
Phone: +852 5627 5338
Email:  priscilla.cheng@megafortune-group.com

FAQ

What is the IPO price for Mega Fortune Company (MGRT) shares?

Mega Fortune Company has priced its IPO at $4.00 per share, offering 3,750,000 ordinary shares.

When will MGRT stock start trading on Nasdaq?

MGRT shares are scheduled to begin trading on the Nasdaq Capital Market on July 16, 2025.

How much money is Mega Fortune Company raising in its IPO?

The company is raising $15 million in gross proceeds before deducting underwriting discounts and other related expenses.

Who is the underwriter for MGRT's IPO?

D. Boral Capital LLC is acting as the sole book-running manager for the offering.

What is the underwriter's option in MGRT's IPO?

The underwriter has a 45-day option to purchase up to 562,500 additional ordinary shares at the public offering price.