WallachBeth Capital Announces Pricing of Powell Max LTD Initial Public Offering

Rhea-AI Summary

Powell Max (Nasdaq: PMAX) has announced the pricing of its initial public offering (IPO) of 1,426,750 Class A Ordinary Shares at $4 per share. The Hong Kong-based financial communications services provider expects to raise $5,707,000 in gross proceeds. Trading on the Nasdaq Capital Market is set to begin on September 5, 2024, under the symbol 'PMAX'. The offering is expected to close on September 6, 2024.

WallachBeth Capital is acting as Lead Underwriter, with Revere Securities as Co-Manager. The company plans to use the net proceeds for setting up overseas business entities, potential mergers and acquisitions, repayment of bank loans, and working capital. An additional 45-day option to purchase up to 214,012 shares has been granted to the Underwriter.

Positive

• Initial public offering (IPO) successfully priced at $4 per share
• Expected gross proceeds of $5,707,000 from the offering
• Listing on Nasdaq Capital Market, potentially increasing visibility and liquidity
• Funds to be used for international expansion and potential M&A activities

Negative

• Potential dilution of existing shareholders' value due to new share issuance
• Underwriter's option to purchase additional shares may further dilute ownership
• Part of proceeds to be used for repayment of bank loans, not directly contributing to growth

Insights

Financial Analyst

Powell Max's IPO pricing at $4 per share, raising $5.7 million, is a modest debut for a financial communications provider. The relatively small offering size suggests market appetite or company scale. The intended use of proceeds for overseas expansion and M&A indicates an aggressive growth strategy, but also implies current limitations in market reach.

The Nasdaq Capital Market listing provides visibility, but investors should note that smaller IPOs often face liquidity challenges. The option for underwriters to purchase additional shares could provide price support post-IPO, but may also increase supply if exercised. Potential investors should scrutinize Powell Max's financials and growth prospects, as the Hong Kong base and global ambitions present both opportunities and risks in the current geopolitical climate.

Market Research Analyst

This IPO reflects growing investor interest in financial technology and communication services, particularly those bridging Asian and Western markets. However, the modest size of the offering may limit institutional participation, potentially affecting liquidity and price stability.

Powell Max's strategy to use proceeds for international expansion and M&A aligns with industry trends but carries execution risks. The company's success will likely depend on its ability to navigate regulatory landscapes across different jurisdictions and differentiate its services in a competitive market. Investors should monitor Powell Max's client acquisition rates and revenue growth post-IPO to gauge its market traction and the effectiveness of its expansion strategy.

JERSEY CITY, N.J., Sept. 5, 2024 /PRNewswire/ -- WallachBeth Capital LLC, a leading provider of capital markets and institutional execution services, announced today that – Powell Max Limited (Nasdaq: PMAX) (the "Company" or "Powell Max"), a financial communications services provider headquartered in Hong Kong, announced the pricing of its initial public offering (the "Offering") of 1,426,750 Class A Ordinary Shares (the "Shares") at a public offering price of $4 per Share. The Company expects to receive aggregate gross proceeds of $ 5,707,000 from the Offering, before deducting underwriting discounts and other offering expenses. In addition, the Company has granted the Underwriter a 45-day option to purchase up to an additional 214,012 Shares at the public offering price, less underwriting discounts.

The Shares are expected to being trading on the Nasdaq Capital Market on September 5, 2024, under the symbol "PMAX." The Offering is expected to close on September 6, 2024, subject to customary closing conditions.

The Company intends to use the net proceeds from the Offering for setting up overseas business entities, branches and offices, potential mergers and acquisitions, repayment of bank loans and for working capital and general corporate use.

WallachBeth Capital LLC (the "Underwriter") is acting as Lead Underwriter to the Offering and Revere Securities LLC is acting as the Co-Manager to the Offering. K&L Gates is acting as U.S. counsel to the Company, and Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the Underwriter.

A registration statement on form F-1 (333-279859) related to these securities has been filed with, and declared effective by, the United States Securities and Exchange Commission on September 4, 2024. The Offering is made only by means of a prospectus. Once available, a copy of the final prospectus related to the Offering may be obtained from: the Underwriter, by email at cap-mkts@wallachbeth.com. The final prospectus 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, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About WallachBeth Capital LLC

WallachBeth Capital offers a robust range of capital markets and investment banking services to the healthcare community, connecting corporate clients with leading institutions, creating value for both issuers and investors. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, and private transactions and ATM's.Forward-Looking Statements

This press release contains certain forward-looking statements, including statements with regard to the Company's proposed initial public offering. Words such as "will," future," "expects," "believes," and "intends," or similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions and no assurance can be given that the proposed initial public offering discussed above will be completed on the terms described. Completion of the proposed initial public offering and the terms thereof are subject to numerous factors, many of which are beyond the control of the Company, including, without limitation, the failure of customary closing conditions and the risk factors and other matters set forth in the prospectus included in the registration statement in the form last filed with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

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SOURCE WallachBeth Capital LLC

FAQ

What is the IPO price for Powell Max (PMAX) shares?

Powell Max (PMAX) has priced its initial public offering at $4 per share.

How many shares is Powell Max (PMAX) offering in its IPO?

Powell Max (PMAX) is offering 1,426,750 Class A Ordinary Shares in its initial public offering.

When will Powell Max (PMAX) start trading on the Nasdaq?

Powell Max (PMAX) is expected to begin trading on the Nasdaq Capital Market on September 5, 2024.

How much does Powell Max (PMAX) expect to raise from its IPO?

Powell Max (PMAX) expects to receive aggregate gross proceeds of $5,707,000 from the offering.

What will Powell Max (PMAX) use the IPO proceeds for?

Powell Max (PMAX) intends to use the net proceeds for setting up overseas business entities, potential mergers and acquisitions, repayment of bank loans, and for working capital and general corporate use.