Ming Shing Group Holdings Limited Announces Closing of the Underwriter’s Over-Allotment Option in Connection with its Initial Public Offering

Rhea-AI Summary

Ming Shing Group Holdings (NASDAQ: MSW), a Hong Kong-based wet trades works service provider, has announced the closing of its underwriter's over-allotment option in connection with its IPO. The company sold an additional 225,000 ordinary shares at $5.50 per share, bringing the total gross proceeds to $9,487,500, including the previously announced IPO proceeds of $8,250,000.

Alexander Capital acted as the managing underwriter, while Alexander and Revere Securities served as joint book-runners for the offering. The IPO registration statement on Form F-1 was declared effective by the SEC on November 21, 2024.

Positive

• Successfully raised $9.49M in total gross proceeds through IPO and over-allotment
• Full exercise of over-allotment option indicates strong market demand
• Successful NASDAQ listing enhances company visibility and access to capital markets

Negative

• Additional share issuance leads to dilution of existing shareholders
• Gross proceeds subject to reduction from underwriting discounts and offering expenses

Insights

Financial Analyst

The successful exercise of the over-allotment option in Ming Shing Group's IPO demonstrates solid market demand for the company's shares. The additional sale of $1,237,500 worth of shares (225,000 shares at $5.50 per share) brings the total IPO proceeds to $9,487,500. This expanded capital raise strengthens Ming Shing's financial position as it pursues its goal of becoming Hong Kong's leading wet trades works provider. The full exercise of the over-allotment option typically indicates strong institutional interest and can provide better price stability in early trading. However, with a relatively modest market cap of $75.86M, investors should note this is a small-cap stock that may experience significant volatility. The involvement of multiple underwriters and legal teams suggests a well-structured offering, though trading volume and liquidity may be initially.

Market Research Analyst

Ming Shing's successful IPO and over-allotment exercise comes at an interesting time for Hong Kong's construction sector. As a wet trades specialist (which typically includes plastering, brick laying and tiling), the company is positioning itself in a important segment of Hong Kong's construction industry. The market's receptiveness to the IPO suggests confidence in the construction sector's growth prospects, despite recent challenges in Hong Kong's property market. The NASDAQ listing gives Ming Shing access to U.S. capital markets, potentially providing advantages over locally-listed competitors. However, being a small-cap foreign issuer means the company will need to demonstrate strong execution and transparent governance to maintain investor interest.

Hong Kong, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Ming Shing Group Holdings Limited (the “Company” or “Ming Shing”), (NASDAQ: MSW), a Hong Kong based company mainly engaged in wet trades works whose mission it is to become the leading wet trades works service provider in Hong Kong, today announced that it closed the sale of an additional 225,000 ordinary shares of the Company, pursuant to the full exercise of the underwriter’s over-allotment option granted in connection with the Company’s initial public offering (“IPO”, together with such over-allotment closing, the “Offering”), at the IPO price of $5.50 per share, less underwriting discounts. As a result, the Company has raised aggregate gross proceeds of $9,487,500, including the previously announced IPO gross proceeds of $8,250,000, prior to deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

Alexander Capital, L.P. (“Alexander”) acted as the managing underwriter for the Offering and Alexander and Revere Securities LLC (“Revere”), acted as joint book-runners for the Offering. Nauth LPC served as counsel to the Company, and Sullivan & Worcester LLP and VCL Law LLP served as counsel to Alexander and Revere in connection with the Offering.

A registration statement on Form F-1 (File No. 333-281817) relating to the Offering, as amended, has been filed with the U.S. Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on November 21, 2024. The Offering is being made only by means of a prospectus. A copy of the final prospectus relating to the Offering may be obtained from obtained from Alexander Capital L.P., 10 Drs James Parker Boulevard #202, Red Bank, New Jersey 07701, Attention: Equity Capital Markets, or by calling (212) 687-5650 or emailing info@alexandercapitallp.com or by logging on to 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 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 Ming Shing Group Holdings Limited

Ming Shing Group Holdings Limited is a Hong Kong-based company mainly engaged in wet trades works, such as plastering works, tile laying works, brick laying works, floor screeding works and marble works. With a mission to become the leading wet trades works services provider in Hong Kong, the Company strives to provide quality services that comply with its customers’ quality standards, requirements, and specifications. The Company conducts its business through its two wholly-owned Hong Kong operating subsidiaries, MS (HK) Engineering Limited and MS Engineering Co. Limited. MS (HK) Engineering Limited is a registered subcontractor and a registered specialist trade contractor under the Registered Specialist Trade Contractors Scheme of the Construction Industry Council and undertakes both private and public sector projects, while MS Engineering Co., Limited mainly focuses on private sector projects. For more information, please visit the Company’s website: https://ir.ms100.com.hk.

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 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 find many (but not all) of these statements by the use of words such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. 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.

For more information, please contact:

Ming Shing Group Holdings Limited
Investor Relations Department
Email: ir@ms100.com.hk

FAQ

What was the total amount raised by Ming Shing Group (MSW) in its IPO including over-allotment?

Ming Shing Group raised total gross proceeds of $9,487,500, including $8,250,000 from the initial IPO and additional proceeds from the over-allotment option.

What was the IPO price per share for Ming Shing Group (MSW)?

The IPO price was $5.50 per share.

How many additional shares were sold through the over-allotment option for Ming Shing Group (MSW)?

The company sold an additional 225,000 ordinary shares through the over-allotment option.

When was Ming Shing Group's (MSW) IPO registration statement declared effective by the SEC?

The SEC declared Ming Shing Group's IPO registration statement effective on November 21, 2024.