Majestic Ideal Holdings Limited Announced Closing of Initial Public Offering
Rhea-AI Summary
Majestic Ideal Holdings (NASDAQ: MJID) has successfully completed its Initial Public Offering (IPO), raising $15.0 million in gross proceeds through the sale of 2,500,000 ordinary shares at $6.00 per share.
The company's shares began trading on the Nasdaq Capital Market on July 18, 2025. The underwriters have a 45-day option to purchase up to an additional 375,000 shares at the offering price. MJID plans to use the proceeds for raw materials procurement, customer base expansion, enhancing SCM service capabilities, exploring eco-friendly materials, and working capital needs.
Majestic Ideal Holdings is a supply chain management service provider in the apparel industry, offering comprehensive solutions for yarn products, textiles, and finished garments.
Positive
- Successfully raised $15.0 million through IPO
- Listing on major exchange (Nasdaq Capital Market)
- Clear allocation plan for IPO proceeds focusing on growth and sustainability
- Additional funding potential through 375,000 share underwriter option
Negative
- Relatively small IPO size may limit market impact
- Potential dilution from underwriters' option exercise
- Operating in competitive apparel industry with thin margins
News Market Reaction
On the day this news was published, MJID declined 26.90%, reflecting a significant negative market reaction. Argus tracked a trough of -41.6% from its starting point during tracking. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $22M from the company's valuation, bringing the market cap to $59M at that time.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) -- Majestic Ideal Holdings Limited (Nasdaq: MJID) (the “Company”), a provider of SCM services in the apparel industry delivering one-stop solution, today announced the closing of its initial public offering (the “Offering”) of 2,500,000 ordinary shares (the “Ordinary Shares”) at a price of
The aggregate gross proceeds from the Offering were
In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 375,000 Ordinary Shares of the Company, at the Offering price, less underwriting discounts.
Craft Capital Management, LLC and WestPark Capital, Inc. are the representatives of the underwriters (the “Underwriters”) for the Offering.
Loeb & Loeb LLP is acting as U.S. legal counsel to the Company, and Haneberg Hurlbert PLC is acting as legal 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- 282499) previously filed with, and subsequently declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 30, 2025. The Offering is being made only by means of a prospectus. 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. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.
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 securities, and no sale of these securities may be made 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 other jurisdiction.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual events may differ materially from current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes to the market for securities, political or financial instability and other factors which are set forth in the Company’s Registration Statement on Form F-1 (File No. 333-282499), as amended, and in all filings with the SEC made by the Company subsequent to the filing thereof. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
About Majestic Ideal Holdings Limited
Majestic Ideal Holdings Limited is a provider of SCM services in the apparel industry delivering one-stop solution to its customers for a broad range of yarn products, textiles and finished garments. The Company’s service offerings encompass every key aspect of the supply chain of these products: market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management. Through its integrated capabilities, the company provides end-to-end supply chain solutions that are tailored to meet its customers’ unique needs.
Contacts
Majestic Ideal Holdings Limited Investor Relations Contact:
Majestic Ideal Holdings Limited
22/F, China United Plaza,
1008, Tai Nan West Street,
Cheung Sha Wan, Kowloon, Hong Kong
(+852) 3915 2600
Email: ir@mcegroup.com
Underwriter Inquiries:
Craft Capital Management, LLC
377 Oak St.
Lower Concourse
Garden City, NY 11530
Email: info@craftcm.com
WestPark Capital, Inc.
1800 Century Park East
Suite 220
Los Angeles, CA 90067
Email: jstern@wpcapital.com
FAQ
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