STAK Inc. Announces Partial Exercise of Underwriters' Over-Allotment Option

Rhea-AI Summary

STAK Inc. (Nasdaq: STAK) announced that underwriters of its initial public offering have partially exercised their over-allotment option to purchase an additional 160,349 ordinary shares at $4.00 per share. The total gross proceeds from the IPO, including this partial over-allotment exercise, reached $5.64 million before deducting underwriting discounts and expenses.

The company, which specializes in oilfield production and maintenance equipment research, development, manufacturing, and sales, began trading on the Nasdaq Capital Market on February 26, 2025. Kingswood Capital Partners, served as the representative of the underwriters for this firm commitment offering.

Positive

• Successfully completed IPO with $5.64M gross proceeds
• Achieved Nasdaq Capital Market listing
• Underwriters showed confidence by exercising over-allotment option

Negative

• Small IPO size may limit operational expansion capabilities
• Only partial exercise of over-allotment option suggests institutional demand

Insights

Financial Analyst

STAK Inc.'s announcement of the partial exercise of underwriters' over-allotment option represents the final phase of its recent IPO process. The underwriters purchased an additional 160,349 shares at $4.00 per share, bringing total IPO proceeds to $5.64 million before expenses.

For context, this newly public company just began trading on February 26, 2025 - less than two weeks ago. With a current market cap of $45.8 million and trading price of $3.98, the stock has maintained remarkable stability near its IPO price, suggesting balanced initial demand.

The over-allotment option (commonly called a "greenshoe") is a standard IPO mechanism allowing underwriters to sell additional shares to meet excess demand and help stabilize early trading. The partial rather than full exercise indicates moderate but not overwhelming investor interest - neither particularly bullish nor bearish, but within expectations for a small-cap offering.

For STAK's business operations in the oilfield equipment sector, this capital raise represents approximately 12.3% of its current valuation - a meaningful but not transformative infusion that strengthens its financial position as it transitions to public company operations.

CHANGZHOU, China, March 4, 2025 /PRNewswire/ -- STAK Inc. (the "Company") (Nasdaq: STAK), a fast-growing company specializing in the research, development, manufacturing, and sale of oilfield-specialized production and maintenance equipment, today announced that the underwriters of its initial public offering (the "Offering") have partially exercised their option to purchase an additional 160,349 ordinary shares at a public offering price of US$4.00 per ordinary share to cover over-allotments. Gross proceeds of the Company's initial public offering, including the partial exercise of the over-allotment, totaled US$5.64 million, before deducting underwriting discounts and other related expenses. The ordinary shares began trading on the Nasdaq Capital Market on February 26, 2025 under the ticker symbol "STAK."

The Offering was conducted on a firm commitment basis. Kingswood Capital Partners, LLC  acted as the representative of the underwriters.

A registration statement on Form F-1 relating to the Offering was filed with the Securities and Exchange Commission (the "SEC") (File Number: 333-283258), as amended, and was declared effective by the SEC on February 25, 2025. The Offering was made only by means of a prospectus forming a part of the registration statement. Copies of the prospectus relating to the Offering may be obtained from Kingswood Capital Partners, LLC at 7280 W Palmetto Park Rd., Suite 301, Boca Raton, FL 33433, or via email at bherman@kingswoodus.com, or telephone at (561) 961-0505. In addition, copies of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

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 STAK Inc.

STAK Inc. is a fast-growing company specializing in the research, development, manufacturing, and sale of oilfield-specific production and maintenance equipment. The Company designs and manufactures oilfield-specialized production and maintenance equipment, then collaborates with qualified specialized vehicle manufacturing companies to integrate the equipment onto vehicle chassis, producing specialized oilfield vehicles for sale. Additionally, the Company sells oilfield-specialized equipment components, related products, and provides automation solutions. Its vision is to help oilfield services companies reduce costs and increase efficiency by providing the cutting-edge integrated oilfield equipment and automation solutions service. Its mission is to become a powerful provider for the niche markets of specialized oilfield vehicles and equipment in China. For more information, please visit the Company's website at https://www.stakindustry.com/ir/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "potential," "intend," "plan," "believe," "likely to" or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any 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 other filings with the SEC.

For more information, please contact:

STAK Inc.
Investor Relations Department
Email: ir@stakindustry.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

View original content:https://www.prnewswire.com/news-releases/stak-inc-announces-partial-exercise-of-underwriters-over-allotment-option-302392055.html

SOURCE STAK Inc.

FAQ

How much did STAK raise in its IPO including the over-allotment option?

STAK raised $5.64 million in gross proceeds, including the partial exercise of the over-allotment option, before deducting underwriting discounts and expenses.

What was the IPO price per share for STAK stock?

STAK's IPO price was set at $4.00 per ordinary share.

When did STAK begin trading on the Nasdaq?

STAK began trading on the Nasdaq Capital Market on February 26, 2025.

How many additional shares were sold through STAK's over-allotment option?

The underwriters purchased an additional 160,349 ordinary shares through the partial exercise of their over-allotment option.