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

Insights

IPO Specialist

Majestic Ideal's $15M IPO provides capital for supply chain expansion in apparel industry with modest pricing and clear use-of-proceeds strategy.

Majestic Ideal Holdings has completed its IPO, raising $15 million by offering 2.5 million ordinary shares priced at $6.00 each. The company began trading on the Nasdaq Capital Market under ticker MJID on July 18. This modest-sized offering positions the Hong Kong-based supply chain management provider in the apparel industry as a publicly traded entity.

The offering price of $6.00 per share sits at the lower end of typical IPO pricing, potentially indicating conservative valuation or challenging market conditions. Underwriters Craft Capital Management and WestPark Capital have received a 45-day option to purchase an additional 375,000 shares at the offering price, which could increase total proceeds by up to $2.25 million if exercised fully.

The company's allocation strategy for the proceeds demonstrates operational focus: procuring raw materials for textile manufacturing, broadening customer base, enhancing supply chain management capabilities, exploring sustainable materials, and funding working capital. This indicates a clear strategy to strengthen their position in the apparel supply chain vertical while expanding into more sustainable offerings.

As a one-stop solution provider in the apparel industry, Majestic Ideal's service spans market trend analysis, product development, raw material sourcing, production, quality control, and logistics management. This comprehensive approach makes them potentially attractive to apparel brands seeking to streamline their supply chain, particularly as sustainability concerns become increasingly important in the sector.

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 $6.00 per Ordinary Share. The Ordinary Shares began trading on the Nasdaq Capital Market on July 18, 2025 under the symbol “MJID.”

The aggregate gross proceeds from the Offering were $15.0 million, before deducting underwriting discounts and other related expenses. The Company intends to use the net proceeds to procure raw materials used in textile and garment manufacturing, to broaden the customer base and develop new customers, to enhance efficiency and SCM service capabilities, to explore and introduce eco-friendly and sustainable raw materials and to broaden the sourcing chain and to fund general working capital needs.

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

What was the IPO price for Majestic Ideal Holdings (MJID) stock?

Majestic Ideal Holdings (MJID) priced its IPO at $6.00 per ordinary share.

How much money did MJID raise in its IPO?

MJID raised $15.0 million in gross proceeds through the sale of 2,500,000 ordinary shares, before deducting underwriting discounts and other expenses.

When did MJID stock begin trading on Nasdaq?

MJID shares began trading on the Nasdaq Capital Market on July 18, 2025.

How will Majestic Ideal Holdings use its IPO proceeds?

MJID will use the proceeds for raw materials procurement, customer base expansion, enhancing SCM capabilities, exploring eco-friendly materials, and working capital needs.

Who were the underwriters for MJID's IPO?

Craft Capital Management, LLC and WestPark Capital, Inc. served as the representatives of the underwriters for the IPO.