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U-BX Technology Ltd. Announces Closing of $10 Million Initial Public Offering

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U-BX Technology (UBXG) closes its IPO, raising $10 million by offering 2,000,000 ordinary shares at $5.00 per share. The Company's shares began trading on Nasdaq Capital Market under the ticker symbol 'UBXG'. EF Hutton , the underwriter, has an option to purchase additional shares to cover over-allotments.
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The completion of U-BX Technology Ltd.'s initial public offering (IPO) represents a significant milestone for the company and a notable event for investors and market participants. The pricing of the IPO at $5.00 per share, with a total raise of $10 million, is a critical data point. It reflects the valuation that the market is prepared to assign to a company in the AI-driven value-added services for insurance carriers sector. This sector is growing, as insurers increasingly rely on AI to improve efficiency and customer experience.

The allocation of the raised funds is particularly interesting. With 60% earmarked for research and development, UBXG signals a strong commitment to innovation, which is essential in the tech sector. The 30% for advertising and marketing suggests that UBXG is also focusing on brand recognition and market penetration. The remaining 10% for general working capital indicates a balanced approach to financial planning. The use of proceeds will likely be scrutinized by investors to ensure that it aligns with growth and profitability targets.

Investors will pay close attention to the underwriter's over-allotment option, commonly known as a 'greenshoe' option. EF Hutton's ability to purchase an additional 300,000 shares can help stabilize the stock price post-IPO, a factor that could influence the stock's short-term performance. The role of EF Hutton as the sole bookrunner indicates confidence in their ability to manage the offering effectively.

Moreover, the legal counsel involved, Ortoli Rosenstadt LLP and Winston & Strawn LLP, adds a layer of credibility to the proceedings, which is important for investor confidence. The successful filing and effectiveness of the registration statement with the SEC are procedural yet vital steps that ensure regulatory compliance and transparency, key considerations for institutional and retail investors alike.

From a legal standpoint, the effectiveness of the registration statement on Form F-1 is a pivotal aspect of the IPO process. It indicates that UBXG has met the SEC's stringent disclosure requirements, providing investors with the necessary information to make informed decisions. The availability of the final prospectus through multiple channels, including the SEC's website, is a transparency measure that supports investor protection.

It is also noteworthy that the offering is made only by means of a prospectus, underscoring the importance of formal disclosure in capital market transactions. The legal framework governing IPOs is designed to ensure fairness and efficiency in the markets and UBXG's adherence to these regulations is a positive sign for potential investors.

Beijing, April 01, 2024 (GLOBE NEWSWIRE) -- U-BX Technology Ltd. (the “Company” or “UBXG”), an artificial intelligence-driven value-added services and products provider to insurance carriers, today announced the closing of its initial public offering (the "Offering") of 2,000,000 ordinary shares (the "Ordinary Shares") at an initial public offering price of $5.00 per share for total gross proceeds of $10,000,000, before deducting underwriting discounts and other offering expenses. The Offering closed on April 1, 2024, and the Ordinary Shares began trading on Nasdaq Capital Market on March 28, 2024, under the ticker symbol "UBXG". The Company has granted EF Hutton LLC (“EF Hutton”), the underwriter, an option to purchase up to an additional 300,000 Ordinary Shares at the public offering price, less underwriting discounts, to cover the over-allotments, if any, exercisable within 45 days from the closing date of the Offering.

EF Hutton acted as the sole bookrunner for the Offering. Ortoli Rosenstadt LLP acted as U.S. counsel to the Company, and Winston & Strawn LLP acted as U.S. counsel to EF Hutton, in connection with the Offering.

The Company intends to use the proceeds from this Offering for 1) research and development (60%); 2) advertising and marketing (30%); and 3) general working capital (10%).

The registration statement on Form F-1 (File No. 333-262412) relating to the Offering, as amended, was filed with the U.S. Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on March 25, 2024. The Offering was made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, from EF Hutton, Attn: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, or via email at syndicate@efhutton.com or telephone at (212) 404-7002. In addition, a copy 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 U-BX Technology Ltd.

Headquartered in Beijing, UB-X Technology Ltd. is a provider of insurance technology in China. The Company focuses on providing value-added services using artificial intelligence-driven technology to businesses within the insurance industry. The Company’s services and products primarily include: 1) Digital promotion services. The Company helps institutional clients boost their social media visibility and generate revenue through consumer engagement and client promotions. 2) Risk assessment services. The Company has developed a unique algorithm named "Magic Mirror" that calculates payout risks for auto insurance coverage based on vehicle information. Insurance carriers purchase the personalized risk reports generated by the algorithm. Magic Mirror utilizes AI and optical character recognition technology to produce detailed risk assessments, including accident likelihood, potential claims, and estimated settlement amounts. and 3) Value-added bundled benefits to insurance carriers. The benefits packages include auto maintenance services, auto value added services, vehicle moving notification services etc. For more information, please visit: https://www.u-bx.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:

Underwriter
EF Hutton LLC
Ms. Stephanie Hu, Head of Asia, Investment Banking
Email:syndicate@efhutton.com

Investor Relations

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


FAQ

What is the ticker symbol for U-BX Technology ?

The ticker symbol for U-BX Technology is 'UBXG'.

How many ordinary shares were offered in the IPO?

The Company offered 2,000,000 ordinary shares in the IPO.

What was the IPO price per share?

The initial public offering price per share was $5.00.

How much total gross proceeds were raised in the IPO?

The IPO raised total gross proceeds of $10,000,000.

Who acted as the sole bookrunner for the Offering?

EF Hutton acted as the sole bookrunner for the Offering.

What percentage of the proceeds will be used for research and development?

60% of the proceeds will be used for research and development.

Where can a copy of the final prospectus related to the Offering be obtained?

A copy of the final prospectus can be obtained from EF Hutton or the SEC's website.

U-BX Technology Ltd. Ordinary Shares

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