Skycorp Solar Group Limited Announces Pricing of Its Initial Public Offering

Rhea-AI Summary

Skycorp Solar Group , a Chinese manufacturer of solar cables and connectors, has announced the pricing of its Initial Public Offering (IPO) on the Nasdaq Capital Market under symbol PN. The company is offering 2,000,000 ordinary shares at $4.00 per share, aiming to raise $8 million in gross proceeds.

Trading is set to begin on March 4, 2025, with an expected closing date of March 5, 2025. Cathay Securities is serving as the underwriter, with a 45-day option to purchase up to 300,000 additional shares. The net proceeds will be allocated as follows:

• 30% for expanding product lines and services
• 30% for strengthening R&D capabilities
• 20% for improving brand recognition
• 20% for working capital and general corporate matters

Positive

• IPO provides $8M in new capital funding
• Nasdaq Capital Market listing enhances visibility
• 60% of proceeds allocated to growth (product expansion and R&D)
• Clear allocation strategy for IPO proceeds

Negative

• Relatively small IPO size of $8M limits growth potential
• Potential dilution from 300,000 share over-allotment option
• High marketing spend (20%) for brand recognition

Insights

Financial Analyst

Skycorp Solar Group 's $8 million IPO represents a modest capital raise in the renewable energy sector. With shares priced at $4.00, this Ningbo-based solar cable and connector manufacturer is making a calculated entry into public markets through the Nasdaq Capital Market.

The company's capital allocation strategy reveals strategic priorities with an even 60% split between growth initiatives (product expansion and R&D), while the remaining 40% addresses marketing and operational needs. This balanced approach suggests management is focused on both expanding market position and technological advancement.

The firm commitment structure provides certainty around the capital raise, though investors should note the relatively small float of 2 million shares (potentially 2.3 million with the overallotment option). The offering represents a microcap entry that will likely experience higher volatility and potentially liquidity compared to larger renewables sector IPOs.

While solar component manufacturers generally benefit from the broader renewable energy transition, specialized cable and connector providers operate in a competitive, often commoditized segment with thinner margins than higher-value solar components. Investors should evaluate Skycorp's technological differentiation and cost position against established competitors when considering this new market entrant.

Renewable Energy Specialist

Skycorp's entry into public markets highlights the ongoing maturation of the solar supply chain ecosystem. As a specialized manufacturer of solar cables and connectors, the company operates in an essential but often overlooked segment of the photovoltaic industry that provides critical components for system reliability and performance.

The allocation of 30% of proceeds toward R&D signals recognition of the need for continued innovation in solar connectivity solutions as the industry evolves toward higher-efficiency modules, increased power capacities, and more challenging installation environments. These specialized components must advance alongside photovoltaic technology improvements to maintain system integrity and performance.

Notably, the equal 30% allocation toward product line expansion suggests Skycorp recognizes opportunities to diversify their component offerings as the solar market continues to fragment into specialized applications (residential, commercial, utility-scale, and potentially emerging segments like vehicle-integrated PV).

Operating from Ningbo, China positions the company within the world's largest solar manufacturing ecosystem, potentially offering supply chain advantages and economies of scale, though it also places them in a highly competitive landscape dominated by established players and increasing margin pressures throughout the solar value chain.

Ningbo, China, March 04, 2025 (GLOBE NEWSWIRE) -- Skycorp Solar Group Limited (the “Company”), a solar PV product provider engaged in the manufacture and sale of solar cables and solar connectors, today announced the pricing of its initial public offering (the “Offering”) of 2,000,000 ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share for total gross proceeds of $8,000,000, before deducting underwriting discounts and other offering expenses. The Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on March 4, 2025, under the ticker symbol “PN.”

The Company has granted the Underwriter (as defined below) an option, within 45 days from the closing date of the Offering, to purchase up to an additional 300,000 Ordinary Shares at the public offering price, less underwriting discounts, to cover the over-allotment option, if any.

The Offering is expected to close on March 5, 2025, subject to the satisfaction of customary closing conditions.

The Offering is being conducted on a firm commitment basis. Cathay Securities, Inc. is acting as the underwriter (the “Underwriter”) for the Offering. Ortoli Rosenstadt LLP is acting as U.S. securities counsel to the Company, and Hunter Taubman Fischer & Li LLC is acting as U.S. securities counsel to the Underwriter, in connection with the Offering.

The Company intends to use 30% of the net proceeds for expanding product lines and services; 30% of the net proceeds for strengthening research and development capabilities; 20% of the net proceeds for improving brand recognition through multi-channel marketing; 20% of the net proceeds for working capital and general corporate matters.

A registration statement on Form F-1 (File No. 333-282996) 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 March 3, 2025. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, when available, from Cathay Securities, Inc.: 40 Wall St Suite 3600, New York, NY 10005, United States, Attention: Shell Li, or via email at service@cathaysecurities.com or telephone at +1 (855) 939-3888, or 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 Skycorp Solar Group Limited

Skycorp Solar Group Limited is a solar photovoltaic (PV) product provider focused on manufacturing and selling solar cables and connectors. We also partner with various IC chip manufacturers to offer new and used GPU and HPC servers. Our operations are managed through our subsidiaries, including Ningbo Skycorp Solar Co., Ltd., in China.

The Company’s mission is to become a green energy solutions provider for data centers by utilizing solar power and delivering eco-friendly solar PV products. By leveraging the Company’s expertise in solar technologies and relationships with HPC server clients, it aims to expand offerings of solar PV products and server solutions for enterprise customers. For more information, please visit: https://www.ir.skycorp.com.

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.
Connie Kang
Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)

FAQ

What is the IPO price and size for Skycorp Solar Group (PN)?

Skycorp Solar Group's IPO is priced at $4.00 per share for 2,000,000 ordinary shares, targeting to raise $8 million in gross proceeds.

When will Skycorp Solar Group (PN) start trading on Nasdaq?

Skycorp Solar Group (PN) is scheduled to begin trading on the Nasdaq Capital Market on March 4, 2025.

How will Skycorp Solar Group (PN) use its IPO proceeds?

The company will allocate 30% each for product expansion and R&D, and 20% each for brand marketing and working capital.

What is the over-allotment option for Skycorp Solar Group's (PN) IPO?

The underwriter has a 45-day option to purchase up to 300,000 additional shares to cover over-allotments.

What products does Skycorp Solar Group (PN) manufacture?

Skycorp Solar Group manufactures and sells solar cables and solar connectors for PV products.