[6-K] Cre8 Enterprise Limited Current Report (Foreign Issuer)
Cre8 Enterprise Limited (NASDAQ: CRE) disclosed that American Trust Investment Services, acting as lead underwriter, fully exercised the IPO over-allotment option on 28 Jul 2025. The option covered 217,500 Class A ordinary shares at the original offering price of US$4.00 per share; closing occurred on 30 Jul 2025.
The exercise supplied an extra US$0.87 million in gross proceeds, bringing total IPO gross proceeds to US$6.67 million before underwriting discounts and related expenses. A press release detailing the transaction is included as Exhibit 99.1.
The full greenshoe take-up indicates healthy aftermarket demand and adds incremental liquidity for corporate uses, albeit with a slight increase in share count and dilution to existing holders.
- Full greenshoe exercise implies strong aftermarket demand for CRE shares
- US$0.87 million additional capital lifts total IPO proceeds to US$6.67 million
- Increased public float may improve liquidity and institutional interest
- Slight shareholder dilution from issuing 217,500 additional shares
- Proceeds remain modest relative to typical growth-capital needs
Insights
TL;DR: Full greenshoe exercise signals strong demand, adds liquidity, limited but positive impact.
The complete take-up of the 15% over-allotment validates underwriter pricing and market appetite post-listing. Although the additional capital is modest, it enhances near-term cash while expanding the public float—improving trading liquidity and index eligibility prospects. With proceeds now at US$6.67 million, management gains incremental runway without further marketing costs. Dilution is minimal, as investors expected this possibility at IPO pricing.
TL;DR: Small cash boost; positive sentiment outweighs minor dilution.
From a portfolio standpoint, the event is marginally accretive. The 217,500-share issue raises cash equal to roughly 13% of initial proceeds, supporting working capital while adding just ~3% to the outstanding share base. Such participation by underwriters often stabilizes post-IPO price action, suggesting reduced near-term volatility. However, given the company’s micro-cap size, the financial impact remains limited in absolute terms.