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

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U-BX Technology (UBXG) announces the pricing of its initial public offering of 2,000,000 ordinary shares at $5.00 per share on the Nasdaq Capital Market, raising $10,000,000 in gross proceeds.
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The initial public offering (IPO) of U-BX Technology Ltd. is a significant event that injects capital into the company, enabling expansion, debt reduction, or investment in new projects. With a set price of $5.00 per share, the total gross proceeds of $10 million suggest a modest valuation for the company, which could indicate either a conservative approach by the underwriters or a reflection of the company's current financial standing. Investors will be interested in the company's use of the proceeds, as this can affect future profitability and growth prospects.

The firm commitment basis of the offering ensures that the underwriter, EF Hutton, has confidence in the company's potential, as they have agreed to buy the shares even if they cannot sell them to the public. The additional option for EF Hutton to purchase up to 300,000 Ordinary Shares to cover over-allotments is a common practice, providing a cushion for excess demand and potentially stabilizing the stock price post-IPO. However, investors should be mindful of the dilutive effect of this over-allotment on existing shares.

Given that the shares will be listed on the Nasdaq Capital Market, a platform for emerging companies, it aligns with U-BX Technology Ltd.'s profile as an AI-driven firm. The success of the IPO and subsequent stock performance will largely depend on investor perception of the AI sector's growth potential and U-BX's competitive positioning within the industry.

The AI sector has been experiencing significant growth, driven by advancements in technology and an increased demand for automation and data analysis across various industries. U-BX Technology Ltd.'s focus on providing AI-driven services to insurance carriers places it in a niche market with substantial growth potential. The use of AI can help insurance companies improve risk assessment, personalize customer experiences and streamline claims processing, among other benefits.

However, the competitive landscape is intense with numerous players, ranging from startups to established technology giants. U-BX's entry into the public market may provide it with the financial resources to invest in innovation and marketing, which are critical for gaining market share. Potential investors should evaluate the company's strategic plan to understand how it intends to differentiate itself and capture value within the AI and insurance ecosystem.

Long-term success will depend on the company's ability to continuously innovate and adapt to the evolving needs of the insurance industry. It is also important to consider regulatory challenges that could impact the deployment of AI in insurance, as this could pose risks to the company's growth trajectory.

The regulatory environment for AI and data privacy is an important consideration for companies like U-BX Technology Ltd. Operating in the insurance sector, the company must navigate complex regulations regarding the use of personal data and AI-driven decision-making. Investors should be aware of the legal risks associated with potential breaches of data protection laws or biased AI algorithms, which could result in significant fines and reputational damage.

The company's listing on the Nasdaq Capital Market will also subject it to stringent reporting requirements and corporate governance standards. This increased transparency can be beneficial for investors, but it also means that U-BX must maintain strict compliance with securities regulations. Any failure to comply could lead to legal challenges and impact investor confidence.

As the company grows and potentially expands internationally, it will also face a diverse range of legal systems and regulations, which could affect its operations and profitability. Investors should consider the strength of the company's legal and compliance teams in assessing its long-term viability.

BEIJING, March 27, 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 pricing of its initial public offering (the "Offering") of 2,000,000 ordinary shares (the "Ordinary Shares") at a public offering price of $5.00 per share (“Public Offering Price”) for total gross proceeds of $10,000,000, 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 28, 2024, under the ticker symbol "UBXG".

The Offering is being conducted on a firm commitment basis. 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-allotment option, exercisable within 45 days from the closing date of the Offering.

The Offering is expected to close on or about April 1, 2024, subject to the satisfaction of customary closing conditions.

EF Hutton is acting as the sole bookrunner for the Offering. Ortoli Rosenstadt LLP is acting as U.S. counsel to the Company, and Winston & Strawn LLP is acting 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 is being 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 in the stock market?

The ticker symbol for U-BX Technology is UBXG.

How many ordinary shares were offered in U-BX Technology 's initial public offering?

U-BX Technology offered 2,000,000 ordinary shares in its initial public offering.

What was the public offering price per share in U-BX Technology 's initial public offering?

The public offering price per share in U-BX Technology 's initial public offering was $5.00.

How much gross proceeds did U-BX Technology raise from its initial public offering?

U-BX Technology raised $10,000,000 in gross proceeds from its initial public offering.

When is U-BX Technology expected to commence trading on the Nasdaq Capital Market?

U-BX Technology is expected to commence trading on the Nasdaq Capital Market on March 28, 2024.

Who is the underwriter for U-BX Technology 's initial public offering?

EF Hutton is the underwriter for U-BX Technology 's initial public offering.

U-BX Technology Ltd. Ordinary Shares

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