Smart Digital Group Limited Announces Closing of Initial Public Offering

Rhea-AI Summary

Smart Digital Group Limited (Nasdaq: SDM), a Singapore-based digital marketing service provider, has successfully completed its Initial Public Offering (IPO). The company offered 1,500,000 ordinary shares at US$4.00 per share, raising gross proceeds of US$6.0 million. Trading began on the Nasdaq Capital Market on May 2, 2025, under the symbol "SDM".

The underwriters have a 45-day option to purchase an additional 225,000 shares. The proceeds will fund business expansion, brand promotion, marketing, software development, and working capital. US Tiger Securities, Inc. served as the sole book-runner for this firm commitment offering.

Positive

• Successfully raised US$6.0 million through IPO
• Achieved listing on Nasdaq Capital Market
• Clear allocation of funds for business expansion and development
• Additional potential capital through 45-day underwriter option for 225,000 shares

Negative

• Relatively small IPO size of US$6.0 million may limit growth potential
• Potential dilution from additional share option if exercised by underwriters

Insights

Financial Analyst

Smart Digital Group completed its IPO raising $6M at $4 per share, marking its transition to public markets with capital for expansion and technology development.

Smart Digital Group Limited has successfully completed its initial public offering, raising $6 million by selling 1.5 million ordinary shares at $4 per share. The Singapore-based digital marketing service provider began trading on the Nasdaq Capital Market on May 2, 2025, under the ticker symbol "SDM."

The company has also granted underwriters a 45-day option to purchase up to an additional 225,000 shares at the offering price, which could potentially increase the total proceeds if exercised. The IPO was conducted on a firm commitment basis with US Tiger Securities acting as the sole book-runner.

According to the press release, the company intends to allocate the proceeds toward several strategic initiatives: business expansion, brand promotion and marketing, software development, and general working capital. This capital infusion provides Smart Digital Group with resources to pursue growth opportunities in the digital marketing sector.

The successful completion of this IPO represents a significant corporate milestone, transforming Smart Digital Group into a publicly traded entity. This transition brings both opportunities and challenges - while providing access to public capital markets for future fundraising, it also introduces new regulatory requirements and shareholder expectations.

The choice to list on Nasdaq rather than on an Asian exchange may reflect the company's international growth ambitions and desire to access the deeper liquidity of U.S. capital markets. This listing gives the company increased visibility in the global investment community, which may benefit its business development efforts going forward.

Overall, this IPO provides Smart Digital Group with fresh capital to execute its business strategies in the competitive digital marketing industry. How effectively management deploys these funds toward their stated objectives will be a key factor for the company's future performance as a public entity.

SINGAPORE, May 5, 2025 /PRNewswire/ – Smart Digital Group Limited (the "Company") (Nasdaq: SDM), a digital marketing service provider in Singapore, today announced the closing of its initial public offering (the "Offering") of 1,500,000 ordinary shares, par value $0.001 per share ("Ordinary Shares"), at a public offering price of US$4.00 per share.

The Company received aggregate gross proceeds of US$6.0 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 225,000 Ordinary Shares at the public offering price, less underwriting discounts. The Ordinary Shares began trading on the Nasdaq Capital Market on May 2, 2025 under the ticker symbol "SDM."

Proceeds from the Offering will be used for business expansion, brand promotion and marketing, software development, and for working capital and other general corporate purposes.

The Offering is being conducted on a firm commitment basis. US Tiger Securities, Inc. is acting as the sole book-runner for the Offering. Hunter Taubman Fischer & Li LLC is acting as counsel to the Company, and VCL Law LLP is acting as counsel to the underwriters in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the Securities and Exchange Commission (the "SEC") (File Number: 333-283152) and was declared effective by the SEC on May 1, 2025. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering may be obtained from US Tiger Securities, Inc. by email at ECM@ustigersecurities.com, by calling +1 646-978-5188, or by standard mail to 437 Madison Avenue, 27th Floor, New York, New York 10022. In addition, a copy 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 prospectus 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 Smart Digital Group Limited

Smart Digital Group Limited is a digital marketing service provider headquartered in Singapore. The Company provides event planning and execution services, internet media services, software customization and marketing services and business planning and consulting services. For more information, visit the Company's website at http://www.sdmmeta.com/.

Forward-Looking Statements

All statements other than statements of historical fact 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 current expectations and projections about future events and financial trends 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 identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update 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 in its other filings with the SEC.

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SOURCE Smart Digital Group Limited

FAQ

What is the IPO price and size for Smart Digital Group (SDM)?

Smart Digital Group's IPO offered 1,500,000 ordinary shares at US$4.00 per share, raising total gross proceeds of US$6.0 million.

When did Smart Digital Group (SDM) start trading on Nasdaq?

Smart Digital Group (SDM) began trading on the Nasdaq Capital Market on May 2, 2025.

How will Smart Digital Group (SDM) use its IPO proceeds?

The proceeds will be used for business expansion, brand promotion and marketing, software development, and working capital and general corporate purposes.

Who is the underwriter for Smart Digital Group's (SDM) IPO?

US Tiger Securities, Inc. acted as the sole book-runner for the IPO.

What additional options were granted to SDM's IPO underwriters?

The underwriters received a 45-day option to purchase up to an additional 225,000 Ordinary Shares at the public offering price.