OFA Group Announces Closing of $15,000,000 Initial Public Offering

Rhea-AI Summary

OFA Group (NASDAQ: OFAL), an architectural design firm, has successfully completed its Initial Public Offering (IPO) of 3,750,000 ordinary shares at $4.00 per share, raising total gross proceeds of $15 million. The company's shares began trading on the Nasdaq Capital Market on May 21, 2025, under the ticker symbol "OFAL".

The underwriter, R.F. Lafferty & Co., has been granted an option to purchase up to an additional 562,500 shares at the IPO price within 45 days. OFA plans to use the proceeds for developing architectural AI services, enhancing service capacity through in-house teams, and general working capital, including establishing a U.S. subsidiary and expanding marketing efforts.

Positive

• Successfully raised $15 million through IPO on NASDAQ
• Strategic investment in AI services development and technology
• Planned expansion into U.S. market through new subsidiary
• Enhancement of service capacity through dedicated in-house teams

Negative

• Potential dilution from additional 562,500 shares if underwriter exercises option
• Relatively small IPO size may limit market impact and liquidity

Insights

Capital Markets Analyst

OFA Group's $15M IPO provides capital for AI services expansion but faces challenges as a smaller offering in the architectural sector.

OFA Group's $15 million IPO represents a modest-sized public offering in today's market. With 3,750,000 shares priced at $4.00 each, the company has secured essential growth capital while establishing a public market presence on the Nasdaq Capital Market. The $4.00 share price positions this as a micro-cap offering, which typically comes with higher volatility and liquidity concerns.

The company's focus on architectural design with plans to expand into AI services suggests a strategic pivot toward technology-enhanced offerings in a traditional sector. The firm commitment underwriting by R.F. Lafferty indicates some institutional confidence, though the relatively small size of the offering may limit initial institutional investor participation.

The capital allocation strategy reveals a dual focus: enhancing core architectural services while developing AI tools. This signals a forward-looking approach to digitizing traditional design services. The planned U.S. subsidiary establishment suggests management sees significant growth opportunities in the American market, potentially leveraging technology differentiation to compete with established firms.

The 45-day underwriter option for an additional 562,500 shares provides flexibility to raise up to $2.25 million in additional capital if market reception proves favorable. However, this modest IPO size may present challenges in generating sufficient trading volume and analyst coverage, which are critical for maintaining strong investor interest post-IPO in today's competitive market environment.

Los Angeles, California--(Newsfile Corp. - May 22, 2025) - OFA Group (NASDAQ: OFAL) (the "Company" or "OFA"), an architectural design firm, today announced the closing of its initial public offering (the "Offering") of 3,750,000 ordinary shares (the "Ordinary Shares") at a public offering price of $4.00 per share for total gross proceeds of $15 million to the Company, before deducting underwriting discounts and other offering expenses.

OFA's Ordinary Shares began trading on the Nasdaq Capital Market on May 21, 2025 under the ticker symbol "OFAL".

The Company has granted the underwriter an option to purchase up to an additional 562,500 Ordinary Shares at the initial public offering price, within 45 days from the closing of the Offering.

The Company intends to use the net proceeds from the Offering (i) for research and development of their architectural AI services and tools, (ii) to enhance its service capacity by establishing dedicated in-house teams for architectural and interior design, as well as project management and (iii) for general working capital and daily operational needs, including, but not limited to, the establishment of a U.S. based subsidiary to expand the Company's services and capacities, funding sales and marketing efforts and developing the Company's web interface.

The Offering was conducted on a firm commitment basis. R.F. Lafferty & Co., Inc. ("R.F. Lafferty") served as sole underwriter for the Offering.

A registration statement on Form F-1 (File No. 333-285103) relating to the Offering, as amended, was filed with the Securities and Exchange Commission (the "SEC") on April 11, 2025 and was declared effective by the SEC on May 15, 2025. The Offering was made only by means of a prospectus. Copies of the final prospectus related to the Offering can be obtained from: R.F. Lafferty by email at offerings@rflafferty.com or via standard mail to R.F. Lafferty & Co., Inc, 40 Wall Street, 27th Floor, New York, NY10005. In addition, copies of the prospectus relating to the Offering can be obtained via the SEC's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation, or sale 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 that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About OFA Group

OFA Group, through its wholly owned operating subsidiary, Office for Fine Architecture Limited, provides comprehensive architectural services, including design and fit out services for commercial and residential buildings. The Company's mission is to leverage its expertise in architectural design to maximize the potential of every property, ensuring that its unique attributes are highlighted and enhanced. At the forefront of architectural innovation, the Company is developing proprietary AI technologies that aims to enhance the Company's architectural design services by integrating cutting-edge artificial intelligence with human expertise. The Company is committed to innovation, efficiency, and scalability at the intersection of architectural excellence and technological advancement.

https://investor.ofacorp.com/

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements although not all forward-looking statements contain these identifying words. These forward-looking statements include statements relating to the expected trading commencement and closing dates, expected use of proceeds, the Company's operations and business strategy and the Company's expected financial results. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty and changes in circumstances. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Relations Contact:
Michael Bacal, Managing Director, Darrow Associates
(917) 886-9071
mbacal@darrowir.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253123

FAQ

What is the IPO price of OFA Group (OFAL) stock?

OFA Group's IPO price was set at $4.00 per share, with 3,750,000 ordinary shares offered to the public.

How much money did OFA Group (OFAL) raise in its IPO?

OFA Group raised $15 million in gross proceeds from its initial public offering before deducting underwriting discounts and other offering expenses.

When did OFA Group (OFAL) start trading on NASDAQ?

OFA Group began trading on the Nasdaq Capital Market on May 21, 2025, under the ticker symbol 'OFAL'.

How will OFA Group (OFAL) use its IPO proceeds?

OFA Group will use the proceeds for developing architectural AI services, enhancing service capacity through in-house teams, establishing a U.S. subsidiary, and general working capital needs.

Who was the underwriter for OFA Group's (OFAL) IPO?

R.F. Lafferty & Co., Inc. served as the sole underwriter for OFA Group's IPO on a firm commitment basis.