Phoenix Asia Holdings Limited Announces Closing of Its Initial Public Offering

Rhea-AI Summary

Phoenix Asia Holdings has successfully completed its Initial Public Offering (IPO) on the Nasdaq Capital Market under the symbol "PHOE". The company raised $6.4 million by offering 1.6 million ordinary shares at $4.00 per share.

The Hong Kong-based substructure contractor's shares began trading on April 25, 2025, with the offering closing on April 28, 2025. D. Boral Capital served as the sole book-running manager. Underwriters have a 45-day option to purchase an additional 240,000 shares to cover over-allotments.

The company plans to utilize the IPO proceeds as follows:

• 35% for staff expansion
• 15% for innovative machinery acquisition
• 10% for enhancing the "Winfield" brand
• 40% for working capital and general corporate purposes

The IPO was conducted on a firm commitment basis, with regulatory approval received from the SEC on April 24, 2025. CFN Lawyers acted as U.S. counsel to Phoenix Asia, while Sichenzia Ross Ference Carmel represented the underwriter.

Positive

• Successfully completed IPO raising $6.4M at $4.00 per share
• Achieved Nasdaq Capital Market listing under symbol PHOE
• 35% of proceeds allocated to workforce expansion
• 15% of funds dedicated to productivity-enhancing machinery
• Clear allocation strategy with 40% reserved for working capital

Negative

• Small IPO size may limit market impact and trading liquidity
• Potential 240,000 share dilution from over-allotment option
• Only 15% allocated to machinery modernization might be insufficient for significant operational improvements
• High percentage (40%) allocated to working capital suggests possible cash flow concerns

Insights

Financial Markets Analyst

Phoenix Asia Holdings completed a modest $6.4M IPO on Nasdaq, securing public capital to expand its Hong Kong construction operations.

Phoenix Asia Holdings Limited has successfully closed its initial public offering, raising $6.4 million by selling 1.6 million ordinary shares at $4.00 per share. The company's shares began trading on the Nasdaq Capital Market on April 25 under the ticker symbol "PHOE." While this is a relatively small IPO by Nasdaq standards, it represents a significant milestone for this Hong Kong-based substructure contractor.

The IPO was structured as a firm commitment offering with D. Boral Capital LLC serving as the sole book-running manager. This arrangement means the underwriter purchased all shares directly from Phoenix Asia, providing certainty in the capital raise. Additionally, the company granted underwriters a 45-day option to purchase up to 240,000 additional shares to cover potential over-allotments.

The allocation of proceeds reveals Phoenix Asia's strategic priorities:

• 35% for enhancing capacity through additional staffing
• 15% for acquiring innovative machinery
• 10% for enhancing their "Winfield" brand
• 40% for working capital and general corporate purposes

This balanced approach between operational expansion and maintaining financial flexibility suggests the company is positioning itself for growth while ensuring adequate liquidity as it transitions to being a public entity. For Phoenix Asia, this successful IPO provides them with access to public capital markets and funds to potentially strengthen their position in Hong Kong's construction sector.

Hong Kong, April 28, 2025 (GLOBE NEWSWIRE) -- Phoenix Asia Holdings Limited (the “Company” or “PHOE”), a premier substructure contractor for public and private sector projects in Hong Kong, today announced the closing of its initial public offering (the “Offering”) of 1,600,000 ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share for total gross proceeds of $6,400,000, before deducting underwriting discounts and other offering expenses. The Offering closed on April 28, 2025, and the Ordinary Shares commenced trading on Nasdaq Capital Market on April 25, 2025, under the ticker symbol “PHOE”.

The Company has granted the underwriters an option, within 45 days from the closing date of the Offering, to purchase up to an additional 240,000 Ordinary Shares at the public offering price, less underwriting discounts, to cover the over-allotment option, if any.

The Offering was conducted on a firm commitment basis. D. Boral Capital LLC acted as the sole book-running manager for the Offering. CFN Lawyers LLC acted as U.S. counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as U.S. counsel to the underwriter in connection with the Offering.

The Company intends to use 35% of the proceeds from this Offering for enhancing our capacities in hiring additional staff, 15% for acquiring innovative machinery to enhance our productivity and service capacity, 10% for enhancing its brand, “Winfield”, and the remaining 40% for working capital and other general corporate purposes.

A registration statement on Form F-1 (File No. 333-284260) 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 April 24, 2025. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained from D. Boral Capital LLC at Syndicate Department, 590 Madison Avenue, 39th floor, New York, NY 10022, or via email at info@dboralcapital.com or telephone at +1 (212) 970 5150. In addition, copies of the final prospectus can also be obtained via 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 Phoenix Asia Holdings Limited

Phoenix Asia Holdings Limited is a substructure contractor for public and private sector projects in Hong Kong via providing craftsmanship, customer satisfaction, and high standards of work and safety.

Recognized as a Registered Specialist Contractor and Certified Registered Subcontractor for various civil works, the Company primarily operates through wholly-owned subsidiary Winfield Engineering (Hong Kong) Limited, which was established in 1990 and specializes in substructure works in Hong Kong, including site formation, ground investigation, and foundation works. It also offers additional construction services such as structural steelworks. For more information, please visit www.winfield.hk; https://ir.winfield.hk/.

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

FAQ

How much did Phoenix Asia Holdings (PHOE) raise in its April 2025 IPO?

Phoenix Asia Holdings (PHOE) raised $6.4 million in gross proceeds through its IPO, selling 1.6 million ordinary shares at $4.00 per share on April 28, 2025.

What is the PHOE stock IPO price and when did trading begin on Nasdaq?

PHOE stock began trading on Nasdaq Capital Market on April 25, 2025, with an IPO price of $4.00 per share.

How will Phoenix Asia Holdings (PHOE) use its IPO proceeds?

PHOE will use 35% for hiring staff, 15% for new machinery, 10% for enhancing their Winfield brand, and 40% for working capital and general corporate purposes.

What is the over-allotment option for PHOE's IPO?

Underwriters have a 45-day option to purchase up to 240,000 additional PHOE shares at the public offering price to cover over-allotments.

Who is the underwriter for Phoenix Asia Holdings (PHOE) IPO?

D. Boral Capital LLC acted as the sole book-running manager for PHOE's IPO, conducting it on a firm commitment basis.