YSX TECH. CO., LTD Announces Closing of Its Initial Public Offering and Full Exercise of Underwriter’s Over-Allotment Option

Rhea-AI Summary

YSX TECH (YSXT) has successfully completed its Initial Public Offering (IPO) on December 19, 2024, raising total gross proceeds of $5.75 million. The company offered 1,250,000 Class A ordinary shares at $4.00 per share, with an additional 187,500 shares sold through the full exercise of the underwriter's over-allotment option. Trading commenced on the Nasdaq Capital Market under the symbol 'YSXT' on December 18, 2024.

The company, operating through variable interest entities in China, provides comprehensive business solutions for insurance companies and brokerages. The IPO proceeds will fund business expansion, new market development, product R&D, talent recruitment, and working capital needs. Kingswood Capital Partners acted as the sole book-runner for this firm commitment offering.

Positive

• Successfully raised $5.75 million in total gross proceeds through IPO
• Full exercise of over-allotment option indicates strong initial demand
• Achieved Nasdaq Capital Market listing
• Clear allocation plan for proceeds targeting growth initiatives

Negative

• Small IPO size may limit institutional investor interest
• Variable interest entity structure in China carries regulatory risks
• Gross proceeds subject to reduction from underwriting discounts and offering expenses

Guangzhou, Dec. 19, 2024 (GLOBE NEWSWIRE) -- YSX TECH. CO., LTD (the “Company” or “YSXT”), a Cayman Islands exempted company that, through its variable interest entities in China, provides comprehensive business solutions mainly for insurance companies and brokerages in China, today announced the closing of its initial public offering (the “Offering”) of 1,250,000 Class A ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share for total gross proceeds of approximately $5,000,000, before deducting underwriting discounts and other offering expenses. The Offering closed on December 19, 2024(the “Closing Date”), and the Ordinary Shares commenced trading on Nasdaq Capital Market on December 18, 2024, under the ticker symbol “YSXT”.

On the Closing Date, the Company also closed the sale of an additional 187,500 Ordinary Shares, pursuant to the full exercise of the over-allotment option granted to the underwriters in connection with the Offering, at the public offering price of $4.00 per share. As a result, the Company has raised additional gross proceeds of $750,000, before deducting underwriting discounts and offering expenses.

The Offering was conducted on a firm commitment basis. Kingswood Capital Partners, LLC acted as the sole book-runner. Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to the Company, and Greenberg Traurig, LLP acted as U.S. counsel to the underwriters, in connection with the Offering.

The Company intends to use the proceeds from this Offering for business expansion and developing new geographic markets, product research and development, talent recruiting, as well as working capital and general corporate purposes.

A registration statement on Form F-1 (File No. 333-280312) relating to the Offering, as amended, was filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 17, 2024. The Offering was made only by means of a prospectus. Electronic copies of the final prospectus related to the Offering may be obtained, when available, from Kingswood Capital Partners LLC: 126 E 56th St, Suite 22S, New York, NY 10022, or by telephone at +1 732- 910- 9692. 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 YSX TECH. CO., LTD

Primarily operating in Xinjiang and Guangdong provinces, YSX TECH. CO., LTD is a Cayman Islands exempted company that, through its variable interest entities in China, provides comprehensive business solutions mainly for insurance companies and brokerages in China. The Company possesses in-depth knowledge of the Chinese insurance industry accumulated from years of servicing customers, and specializes in auto insurance aftermarket value-added services, software development and information technology services, as well as other scenario-based customized services, such as products and customer development services. For more information please visit: https://ir.ysxtechcay.com and https://www.ysxnet.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. 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:

At the Company
marketing@ysxnet.com
+86 (20) 2984 2002

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

FAQ

What was the total amount raised in YSXT's IPO including the over-allotment option?

YSXT raised total gross proceeds of $5.75 million, consisting of $5 million from the initial offering and $750,000 from the full exercise of the over-allotment option.

When did YSXT stock begin trading on Nasdaq and at what price?

YSXT began trading on the Nasdaq Capital Market on December 18, 2024, with an IPO price of $4.00 per share.

How many shares did YSXT offer in its IPO including the over-allotment?

YSXT offered a total of 1,437,500 shares, comprising 1,250,000 initial shares and 187,500 additional shares from the over-allotment option.

What will YSXT use the IPO proceeds for?

YSXT plans to use the proceeds for business expansion, developing new geographic markets, product research and development, talent recruiting, and working capital purposes.

Who was the underwriter for YSXT's IPO?

Kingswood Capital Partners, acted as the sole book-runner for YSXT's IPO.