NaaS Technology Inc. Announces US$6 Million Registered Direct Offering

Rhea-AI Summary

NaaS Technology Inc. (NAAS) has finalized a deal with a U.S. institutional investor for the purchase of 4,761,905 ADSs and warrants at a combined price of US$1.26 per ADS. The registered direct offering is set to raise approximately US$6 million in gross proceeds. The warrants will have an exercise price of US$1.49 and expire five years from the initial exercise date.

Financial Analyst

The capital raise by NaaS Technology Inc. through a direct offering of American Depositary Shares (ADS) and warrants is a strategic move to bolster the company's financial position. The transaction, which is structured to generate approximately US$6 million in gross proceeds, indicates the company's need for capital infusion, likely to fund its expansion, technology development, or operational costs. The pricing of the ADS at US$1.26, along with the warrant's exercise price of US$1.49, reflects the current market valuation and investor sentiment towards the company's prospects.

It is important for stakeholders to consider the potential dilutive effect of this transaction on existing shares. The issuance of additional ADS and the subsequent exercise of warrants could lead to a decrease in the EPS (Earnings Per Share) if the increase in share count outpaces the growth in net income. However, if the company effectively deploys the raised capital to accelerate growth, it could potentially lead to an increase in shareholder value over the long term.

Investors should also note the timing of the warrant exercise, which is set to begin six months following the issuance. This period allows the investor to observe the company's performance before potentially increasing their stake. The five-year expiration term provides a long-term investment horizon, which could be seen as a vote of confidence in the company's future.

Market Research Analyst

The EV charging sector in China is experiencing rapid growth due to supportive government policies and increasing adoption of electric vehicles. NaaS Technology Inc.'s capital raise through the sale of ADS and warrants to a U.S. institutional investor highlights the cross-border interest in China's EV infrastructure market. This investment could signal positive market expectations for the EV charging industry and NaaS's positioning within it.

However, the market will be closely watching the deployment of the raised funds. Strategic investments in expanding the charging network, partnerships and technological advancements are key areas that could drive market share and revenue growth. The long-term success of this capital raise will largely depend on how effectively NaaS can leverage these funds to capitalize on the market opportunities presented by China's EV boom.

Economist

This direct offering comes at a time when global economic conditions and capital markets are showing signs of volatility. The decision by NaaS to secure funding through a registered direct offering, rather than traditional means like bank financing or public offerings, could be indicative of a strategic approach to minimize dilution and expedite the capital raise process. The introduction of U.S. capital into the Chinese EV charging market also reflects the interconnectedness of global financial markets and the willingness of investors to engage in foreign opportunities that present growth potential.

From an economic perspective, the inflow of U.S. investment into China's EV infrastructure could contribute to the sector's development and innovation. It also highlights the importance of bilateral economic relationships and the potential for future collaborations between U.S. investors and Chinese technology firms.

BEIJING, March 13, 2024 /PRNewswire/ -- NaaS Technology Inc. (Nasdaq: NAAS) ("NaaS" or the "Company"), the first U.S. listed EV charging service company in China, today announced that it has entered into a definitive agreement with a single, U.S. institutional investor for the purchase and sale of 4,761,905 American Depositary Shares ("ADS") together with warrants to purchase up to 4,761,905 ADSs at a combined purchase price of US$1.26 per ADS and accompanying warrant (together the "Securities"), pursuant to a registered direct offering for total gross proceeds of approximately US$6 million, before deducting commissions and other estimated offering expenses. The warrants will have an exercise price of US$1.49, will be exercisable beginning six months following the date of issuance and will expire five years from the initial exercise date. The closing of the offering and sale of the Securities is expected to occur on or about March 15, 2024, subject to the satisfaction of customary closing conditions. 

This offering is being made pursuant to an effective shelf registration statement on Form F-3 (File No 333-273515) previously filed with the U.S. Securities and Exchange Commission (the "SEC"). A prospectus supplement describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. 

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these Securities, nor shall there be any sale of these Securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About NaaS Technology Inc.

NaaS Technology Inc. (Nasdaq: NAAS) is the first U.S. listed EV charging service company in China. The Company is a subsidiary of NewLink Technology Limited, a leading energy digitalization group in China. The Company provides one-stop solutions to energy asset owners comprising charging services, energy solutions and new initiatives, supporting every stage of energy asset's lifecycle and facilitating energy transition. As of September 30, 2023, NaaS had connected 767,611 chargers covering 73,710 charging stations, representing 41.6% and 50.0% of China's public charging market share respectively.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the timing and completion of the proposed offering and other statements that are predictive in nature. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the NaaS Technology Inc. filings with the SEC, including, without limitation, its Annual Report on Form 20-F for the year ended December 31, 2022 and its Current Reports on Form 6-K filed in 2023, as well as the risks identified in the shelf registration statement and the prospectus supplement relating to the offering. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. NaaS Technology Inc. undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com 
Media inquiries:
E-mail: pr@enaas.com

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SOURCE NaaS

FAQ

What is the recent announcement by NaaS Technology Inc. (NAAS)?

NaaS Technology Inc. (NAAS) has entered into a definitive agreement with a U.S. institutional investor for the purchase and sale of 4,761,905 American Depositary Shares (ADS) and warrants.

How many ADSs are being purchased in the agreement?

A total of 4,761,905 American Depositary Shares (ADS) are being purchased.

What is the price per ADS in the agreement?

The price per ADS in the agreement is US$1.26.

What is the expected gross proceeds from the offering?

The registered direct offering is expected to raise approximately US$6 million in gross proceeds.

What is the exercise price of the warrants?

The warrants will have an exercise price of US$1.49.

When will the warrants be exercisable?

The warrants will be exercisable beginning six months following the date of issuance.

When will the warrants expire?

The warrants will expire five years from the initial exercise date.