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Zhibao Technology Inc. Announces Pricing of Initial Public Offering

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Zhibao Technology Inc. announced the pricing of its initial public offering of 1,500,000 Class A ordinary shares at $4.00 per share, totaling $6,000,000 in gross proceeds. The Company has granted underwriters an option to purchase additional shares. The shares are approved for listing on Nasdaq under the symbol 'ZBAO.' The offering is expected to close on April 3, 2024.
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Zhibao Technology Inc.'s initial public offering (IPO) represents a significant milestone for the company, signaling a transition from a private to a public entity. This move allows for greater capital inflow, which can be pivotal for expansion and increased market penetration. The pricing of shares at $4.00, leading to a $6 million gross proceeds, is relatively modest, suggesting a conservative approach that might appeal to investors wary of volatility, especially in the tech sector.

The inclusion of a 45-day option for underwriters to cover over-allotments is standard practice, providing a buffer for additional demand and potential price stabilization post-IPO. The approval for listing on The Nasdaq Capital Market indicates ZBAO's compliance with financial and corporate governance requirements, which can be reassuring for investors. As a high growth InsurTech company, ZBAO is positioned in a market with significant potential, given the increasing reliance on digital solutions in the insurance industry.

Investors will be keen to scrutinize ZBAO's financials, given that the IPO proceeds are critical for its growth strategy. The $6 million raised will likely be allocated towards technology development, market expansion, or operational scalability. It is essential to compare this capital infusion with ZBAO's burn rate to assess sustainability. The pricing of the IPO also sets a benchmark for the company's valuation, which will be closely monitored for post-IPO performance.

EF Hutton LLC's role as the sole book-running manager is noteworthy, as their reputation and expertise can influence investor confidence. The effectiveness of the registration statement by the SEC is also a green light for investors, indicating regulatory compliance. However, given the volatility in the tech sector, the long-term return on investment will depend on ZBAO's ability to maintain growth and profitability in a competitive InsurTech landscape.

From a legal perspective, the IPO process involves rigorous scrutiny by the SEC, ensuring that all necessary disclosures are made. ZBAO's filing of a Form F-1, which is specific to foreign issuers, indicates its international status and the need to comply with both U.S. and Chinese regulations. The final prospectus will be a key document for investors, containing detailed information about ZBAO's business, financials and risk factors.

Investors should be aware of the geopolitical risks associated with investing in Chinese companies, including regulatory changes and trade tensions that could impact ZBAO's operations. The 45-day over-allotment option also carries legal implications, as it must be exercised in accordance with SEC regulations and within the stipulated timeframe.

Shanghai, April 01, 2024 (GLOBE NEWSWIRE) -- Zhibao Technology Inc. (“ZBAO” or the “Company”), a leading and high growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities in China, announced today the pricing of its initial public offering (the “Offering”) of 1,500,000 Class A ordinary shares at a price of $4.00 per share to the public for a total of $6,000,000 of gross proceeds to the Company, before deducting underwriting discounts and offering expenses.

The Company has granted a 45-day option to the underwriters to purchase up to 225,000 additional Class A ordinary shares solely to cover over-allotments, if any. All of the Class A ordinary shares are being offered by the Company. The Class A ordinary shares have been approved for listing on The Nasdaq Capital Market and are expected to begin trading on April 2, 2024, under the symbol "ZBAO." The offering is expected to close on April 3, 2024, subject to customary closing conditions.

EF Hutton LLC is acting as the sole book-running manager for the Offering.

A registration statement on Form F-1 relating to the Offering, as amended, was filed with the Securities and Exchange Commission (the “SEC”) (File Number: 333 -274431) and was declared effective by the SEC on March 29, 2024. The Offering is being made only by means of a prospectus, forming part of the effective registration statement. A preliminary prospectus relating to the Offering has been filed with the SEC. A copy of the final prospectus related to the Offering, when available, will be filed with the SEC and 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, when available, relating to the Offering may 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 complete 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 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. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. 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 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. 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 number of Class A ordinary shares offered in Zhibao Technology Inc.'s IPO?

Zhibao Technology Inc. offered 1,500,000 Class A ordinary shares in its IPO.

At what price were the Class A ordinary shares priced in Zhibao Technology Inc.'s IPO?

The Class A ordinary shares were priced at $4.00 per share in Zhibao Technology Inc.'s IPO.

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

Zhibao Technology Inc. generated $6,000,000 in gross proceeds from its IPO.

What is the expected trading date for Zhibao Technology Inc.'s shares on Nasdaq?

Zhibao Technology Inc.'s shares are expected to begin trading on April 2, 2024, on Nasdaq under the symbol 'ZBAO.'

Who is the sole book-running manager for Zhibao Technology Inc.'s IPO?

EF Hutton is the sole book-running manager for Zhibao Technology Inc.'s IPO.

Zhibao Technology Inc.

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