YSX TECH. CO., LTD Announces Pricing of Its Initial Public Offering

Rhea-AI Summary

YSX TECH (NASDAQ: YSXT) has announced the pricing of its Initial Public Offering of 1,250,000 Class A ordinary shares at $4.00 per share, raising approximately $5 million in gross proceeds. The company provides business solutions for insurance companies and brokerages in China through its variable interest entities. Trading is expected to commence on December 18, 2024, on the Nasdaq Capital Market. Underwriters have a 45-day option to purchase up to 187,500 additional shares. The offering, managed by Kingswood Capital Partners as sole book-runner, is expected to close on December 19, 2024. Proceeds will fund business expansion, market development, R&D, talent recruitment, and working capital.

Positive

• IPO provides $5 million in fresh capital for business expansion
• Nasdaq Capital Market listing enhances company visibility and trading liquidity
• Firm commitment basis offering indicates underwriter confidence
• Clear allocation plan for proceeds targeting growth initiatives

Negative

• Relatively small IPO size of $5 million may limit growth potential
• Variable interest entity structure in China poses regulatory risks
• Potential dilution from 187,500 share over-allotment option

Insights

Financial Analyst

This IPO pricing announcement reveals a relatively small offering of $5 million through 1,250,000 Class A shares at $4.00 per share, positioning YSXT as a micro-cap company. The firm commitment structure provides some confidence, though the modest size suggests initial market impact. The company's focus on insurance technology solutions in China presents both opportunities and risks. The planned use of proceeds for business expansion, R&D and talent acquisition indicates a growth-oriented strategy, though the capital raise may constrain scalability. The over-allotment option of 187,500 additional shares could provide some additional liquidity if exercised. Investors should note the VIE structure common in Chinese listings, which carries inherent regulatory risks.

Tech Industry Analyst

Operating through VIEs in China's insurtech sector, YSXT's business model targets a growing market for digital insurance solutions. The company's focus on comprehensive business solutions for insurance companies and brokerages positions it in the B2B segment of China's digital transformation wave. However, the relatively small IPO raise of $5 million may limit technological advancement capabilities compared to larger competitors. The allocation of proceeds to product R&D and market expansion suggests a strategic focus on product development and market penetration, though execution will be important given the funding. The regulatory environment for both tech and financial services in China adds complexity to the growth trajectory.

Guangzhou, Dec. 17, 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 pricing 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 Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on December 18, 2024, under the ticker symbol “YSXT”.

The Company has granted the underwriters an option, exercisable within 45 days from the closing date of the Offering, to purchase up to an additional 187,500 Ordinary Shares at the public offering price, less underwriting discounts, to cover the over-allotment, if any.

The Offering is expected to close on December 19, 2024, subject to the satisfaction of customary closing conditions.

The Offering is being conducted on a firm commitment basis. Kingswood Capital Partners, LLC is acting as the sole book-runner. Hunter Taubman Fischer & Li LLC is acting as U.S. securities counsel to the Company, and Greenberg Traurig, LLP is acting 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, has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on December 17, 2024. The Offering is being 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 56^th 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. 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:

YSX TECH. CO., LTD
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 is the IPO price and size for YSX TECH (YSXT) in December 2024?

YSX TECH's IPO is priced at $4.00 per share for 1,250,000 Class A ordinary shares, raising approximately $5 million in gross proceeds.

When will YSXT stock begin trading on Nasdaq?

YSXT stock is expected to commence trading on the Nasdaq Capital Market on December 18, 2024.

How will YSX TECH use the IPO proceeds?

The company plans to use proceeds for business expansion, developing new markets, product R&D, talent recruiting, and working capital.

What is the over-allotment option for YSXT's IPO?

Underwriters have a 45-day option to purchase up to 187,500 additional shares at the public offering price to cover over-allotments.

Who is the lead underwriter for YSXT's IPO?

Kingswood Capital Partners, is acting as the sole book-runner for the IPO.