STOCK TITAN

Zhibao Technology Inc. Announces Closing of Underwriters’ Over-Allotment Option in Connection with Its Initial Public Offering

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Zhibao Technology Inc. (Nasdaq: ZBAO), a leading InsurTech company in China, announced the issuance of an additional 23,765 Class A ordinary shares. This issuance resulted from a partial exercise of the underwriters' over-allotment option in connection with its initial public offering (IPO). The shares were priced at $4.00 each, generating additional gross proceeds of $95,060. Including the over-allotment, the total gross proceeds from the IPO amounted to $6,095,060, excluding offering expenses and underwriting discounts. EF Hutton served as the sole book-running manager for the offering. The SEC declared the registration statement effective on March 29, 2024, and the final prospectus was filed on April 2, 2024.

Positive
  • Zhibao Technology raised a total of $6,095,060 from its IPO.
  • The issuance of additional shares generated $95,060 in gross proceeds.
  • High growth potential indicated by the initial public offering.
  • EF Hutton acted as the sole book-running manager, indicating reputable backing.
  • Effective registration with the SEC, ensuring regulatory compliance.
Negative
  • The additional 23,765 shares may lead to shareholder dilution.
  • Gross proceeds are before offering expenses and underwriting discounts, potentially reducing net proceeds.

Zhibao Technology Inc.'s successful initial public offering (IPO) and the partial exercise of the underwriters' over-allotment option contribute significantly to the company’s financial health and market standing. Raising a total of $6,095,060 adds a solid foundation for growth and potential expansion. This infusion of capital could be instrumental in scaling their operations and enhancing their technology stack, vital for an InsurTech firm aiming to stay competitive.

For retail investors, it's essential to understand the over-allotment option. Often called the

Zhibao Technology Inc.’s IPO and the subsequent exercise of the over-allotment option highlight the company’s strategic positioning within the burgeoning InsurTech sector. This sector, integrating insurance with technology, is experiencing rapid growth, particularly in regions like China, where digital transformation is aggressively pursued. The IPO success suggests that investors have confidence in Zhibao's business model and market potential.

Retail investors should note the market dynamics at play. The InsurTech sector is characterized by high growth but also high competition and regulatory scrutiny. Zhibao's ability to attract substantial investment points to a robust business strategy and substantial market demand for digital insurance solutions. However, investors should remain cautious of the competitive landscape and evolving regulatory frameworks, which may impact future profitability and scalability.

Shanghai, China, May 15, 2024 (GLOBE NEWSWIRE) -- Zhibao Technology Inc. (Nasdaq: ZBAO) (“Zhibao” or the “Company”), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, today announced that it issued an additional 23,765 Class A ordinary shares of the Company pursuant to the partial exercise of the underwriters’ over-allotment option in connection with the Company’s initial public offering at $4.00 per share, resulting in additional gross proceeds of $95,060.

Total proceeds of the Company’s initial public offering, including the exercise of the over-allotment option, were $6,095,060, before offering expenses and underwriting discounts.

EF Hutton LLC acted as the sole book-running manager for the offering.

A registration statement on Form F-1 (File Number: 333 -274431) 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 29, 2024. A final prospectus related to the offering was filed on April 2, 2024, and made available on the SEC's website at http://www.sec.gov. The offering was made only by means of a prospectus, forming part of the effective registration statement. A copy of the final prospectus related to the offering may be obtained from EF Hutton LLC, 590 Madison Avenue, 39th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@efhutton.com or telephone at (212) 404-7002. In addition, a copy of the final prospectus relating to the offering may be obtained via the SEC's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 Zhibao Technology Inc.

Zhibao Technology Inc. (“Zhibao” or the “Company”) is a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities (“Zhibao China Group”) in China. 2B2C (“to-business-to-customer”) digital embedded insurance is the Company’s innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS (“Platform as a Service”).

Zhibao has developed more than 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao China Group acquire and analyze customer data, utilize big data and artificial intelligence technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep the Company abreast of the new trends and customer preferences in the market.

For more information, please visit the Company’s website at www.zhibao-tech.com.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," “is/are likely to,” "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. 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 that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. 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. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.

Contact Information:

For Media and Investor Relations
Zhibao Technology Inc.
Investor Relations Office
ir@zhibao-tech.com

Skyline Corporate Communications Group, LLC
Scott Powell, President
Avenues Tower
1177 Avenue of the Americas, 5th floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com



FAQ

What is the total gross proceeds from Zhibao Technology's IPO?

The total gross proceeds from Zhibao Technology's IPO, including the exercise of the over-allotment option, were $6,095,060.

How many additional shares did Zhibao Technology issue?

Zhibao Technology issued an additional 23,765 Class A ordinary shares.

At what price were the additional shares of Zhibao Technology issued?

The additional shares were issued at $4.00 per share.

Who managed Zhibao Technology's IPO?

EF Hutton acted as the sole book-running manager for Zhibao Technology's IPO.

When was Zhibao Technology's registration statement declared effective by the SEC?

The SEC declared Zhibao Technology's registration statement effective on March 29, 2024.

Zhibao Technology Inc.

NASDAQ:ZBAO

ZBAO Rankings

ZBAO Latest News

ZBAO Stock Data

135.55M
14.68M
United States of America