Jinxin Technology Holding Company Announces Pricing of US$5 Million Initial Public Offering

Rhea-AI Summary

Jinxin Technology Holding Company, a Chinese digital content service provider, has announced the pricing of its initial public offering (IPO) of 1,250,000 American Depositary Shares (ADSs) at $4.00 per ADS. Each ADS represents 18 ordinary shares. The company expects to raise $5 million in gross proceeds and will trade on Nasdaq under symbol NAMI starting December 06, 2024.

The underwriters have a 60-day option to purchase up to 187,500 additional ADSs. Proceeds will fund product development, marketing, recruitment, and potential strategic investments. The offering is expected to close around December 09, 2024, with Craft Capital Management and WestPark Capital, Inc. acting as representatives.

Positive

• IPO will raise $5 million in gross proceeds
• Listing on Nasdaq Capital Market enhances visibility and trading access
• Clear allocation of funds for growth initiatives
• Additional funding possible through 187,500 ADS underwriter option

Negative

• Small offering size of only $5 million may limit growth potential
• Potential dilution from underwriters' option to purchase additional ADSs
• Multiple underwriting and offering expenses will reduce net proceeds

Insights

Financial Analyst

This IPO pricing announcement reveals a relatively small offering of $5 million through 1,250,000 ADSs priced at $4.00 per share, with each ADS representing 18 ordinary shares. The offering size suggests a cautious market entry strategy. The planned use of proceeds focuses on core business development areas including product development, marketing and talent acquisition, which are essential for growth in China's competitive digital content market. However, the modest size of the raise may limit the company's ability to make significant market impact or pursue substantial acquisitions. Trading under ticker 'NAMI' on Nasdaq Capital Market indicates the company meets smaller-cap listing requirements. The 60-day underwriter option for additional 187,500 ADSs provides some flexibility for increased capital raise if market reception is positive.

Market Research Analyst

The timing of this IPO in the current market environment is noteworthy, as Chinese tech companies face increased scrutiny and regulatory challenges in U.S. markets. As a digital content service provider, Jinxin Technology enters a highly competitive sector in China where market leaders have established strong positions. The relatively small IPO size may reflect conservative investor sentiment toward Chinese tech listings. The company's focus on using proceeds for content development and marketing suggests a strategy to capture market share in specific digital content niches. The involvement of multiple underwriters including Craft Capital, WestPark Capital and R.F. Lafferty indicates a diversified distribution approach, though these are not top-tier investment banks typically associated with major tech IPOs.

SHANGHAI, Dec. 5, 2024 /PRNewswire/ -- Jinxin Technology Holding Company (the "Company"), an innovative digital content service provider in China, today announced the pricing of its initial public offering (the "Offering") of 1,250,000 American Depositary Shares ("ADSs") at a price to the public of US$4.00 per ADS. Each ADS represents eighteen (18) ordinary shares of the Company. The ADSs have been approved for listing on The Nasdaq Capital Market and are expected to commence trading on December 06, 2024 under the ticker symbol "NAMI."

The Company expects to receive aggregate gross proceeds of US$5 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 60-day option to purchase up to an additional 187,500 ADSs at the initial public offering price, less underwriting discounts. The Offering is expected to close on or about December 09, 2024, subject to the satisfaction of customary closing conditions.

Net proceeds from the Offering will be used for (i) product and content development; (ii) sales and marketing and brand promotions; (iii) recruitment of experienced personnel; and (iv) other general corporate purposes, and potential strategic investments and acquisitions to strengthen the Company's technological capabilities and overall ecosystem.

Craft Capital Management LLC and WestPark Capital, Inc. are acting as the representatives in the Offering, and R. F. Lafferty & Co., Inc. is acting an underwriter (collectively, the "Underwriters"). Kirkland & Ellis International LLP is acting as U.S. counsel to the Company, and Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the Underwriters in connection with the Offering.

Registration statements on Form F-1 relating to the Offering were filed with the Securities and Exchange Commission (the "SEC") (File Number: 333-273884 and 333-278897) and, as amended, were declared effective by the SEC on September 30, 2024. The Offering is being made only by means of a prospectus forming a part of the registration statement. Copies of the prospectus relating to the Offering may be obtained, when available, from Craft Capital Management LLC at 377 Oak St, Lower Concourse, Garden City, NY 11530, via email at info@craftcm.com or by calling +1 800-550-8411; or from WestPark Capital, Inc. at 1800 Century Park East, Suite 220, Los Angeles, CA 90067, via email at jstern@wpcapital.com, or by calling +1-310-843-9300; or from R.F. Lafferty & Co., Inc. at 40 Wall Street, 27th Floor, New York, NY 10005, via email at info@rflafferty.com or by calling +1-212-293-9090. In addition, copies of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

Before you invest, you should read the registration statement and the preliminary prospectus contained therein and the final prospectus, when available, and other documents the Company has filed or will file with the SEC for more complete 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 such securities be offered or sold in the United States absent registration or an applicable exemption from registration, 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 Jinxin Technology Holding Company

Headquartered in Shanghai, China, Jinxin Technology Holding Company is an innovative digital content service provider in China. Leveraging the powerful digital content generation engine powered by advanced AI/AR/VR/digital human technologies, the Company is committed to offering users high-quality digital content services through both its own platform and the content distribution channels of its strong partners. According to Frost & Sullivan, the Company was the largest digital textbook platform in China in terms of revenue in 2022, with a market share of 12.7%. The Company currently target K-9 students in China, with core expertise in providing them digital and integrated educational contents, and plan to further expand service offerings to provide premium and engaging digital contents to other age groups. The Company collaborates with leading textbook publishers in China and provides digital version of mainstream textbooks used in primary schools and middle schools. The Company's AI-generated content technology enables comprehensive digital contents to deliver an interactive, intelligent and entertaining learning experience. The Company distributes digital contents primarily through (i) its flagship learning app, Namibox, (ii) telecom and broadcast operators and (iii) third-party devices with our contents embedded. For more information, please visit the company's website at https://ir.namibox.com.

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 find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions in this prospectus. 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:

Jinxin Technology Holding Company
Investor Relations Department
Email: ir@namibox.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

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SOURCE Jinxin Technology Holding Company

FAQ

What is the IPO price for Jinxin Technology (NAMI) shares?

Jinxin Technology's IPO is priced at $4.00 per ADS, with each ADS representing eighteen ordinary shares.

When will Jinxin Technology (NAMI) start trading on Nasdaq?

Jinxin Technology (NAMI) is expected to commence trading on The Nasdaq Capital Market on December 06, 2024.

How much money is Jinxin Technology (NAMI) raising in its IPO?

Jinxin Technology is expecting to raise $5 million in gross proceeds from the IPO before deducting underwriting discounts and related expenses.

How will Jinxin Technology (NAMI) use its IPO proceeds?

The proceeds will be used for product and content development, sales and marketing, recruitment of personnel, and other corporate purposes including potential strategic investments.