Aureus Greenway Holdings Inc. Announces the Closing of its Initial Public Offering

Rhea-AI Summary

Aureus Greenway Holdings (NASDAQ: AGH), a Florida-based operator of daily fee golf country clubs, has completed its initial public offering. The company sold 3,750,000 shares at $4.00 per share, raising total gross proceeds of $15,000,000 before deducting underwriting costs and expenses.

The offering included 3,000,000 shares from the company and 750,000 shares from selling stockholders. Trading began on the Nasdaq Capital Market on February 12, 2025, under the symbol 'AGH'. Dominari Securities acted as lead underwriter, with Revere Securities as co-underwriter.

The company will not receive any proceeds from shares sold by selling stockholders. The offering was made through a Form S-1 registration statement declared effective by the SEC on November 12, 2024, and post-effectively on February 10, 2025.

Positive

• Successfully raised $12 million in gross proceeds from company shares
• Achieved NASDAQ listing, increasing visibility and trading access
• Complete subscription of all offered shares indicating strong market interest

Negative

• 25% of IPO shares (750,000) sold by existing stockholders, not benefiting company
• Relatively small IPO size may limit institutional investor interest
• Proceeds will be reduced by underwriting discounts and offering expenses

Insights

Financial Markets Analyst

This IPO presents an interesting case study in the leisure and hospitality sector, particularly noteworthy for its modest size and structure. The $15 million gross proceeds, while relatively small for a Nasdaq listing, actually translates to approximately $12 million in net proceeds for the company after standard underwriting fees and expenses, with only $12 million from primary shares going to the company's balance sheet.

The selection of Dominari Securities and Revere Securities as underwriters, both boutique investment banks, suggests a strategic choice that likely balanced cost considerations with market access. This arrangement typically allows for more flexible terms but might result in less institutional investor participation compared to deals led by bulge-bracket banks.

The timing of this IPO is particularly intriguing given the current market dynamics in Florida's leisure sector. The state's population growth and tourism trends continue to support the golf industry, with daily fee courses benefiting from both local and tourist demand. The 20% secondary share component (750,000 shares) indicates moderate insider selling, suggesting a balanced approach between providing liquidity for early investors while maintaining significant skin in the game.

The company's focus on daily fee golf courses positions it uniquely in the market, avoiding the higher operational costs associated with private country clubs while capturing the growing casual golf segment. This business model offers potential for steady cash flow generation through green fees and ancillary revenue streams like food and beverage services, pro shop sales, and events.

Kissimmee, FL, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Aureus Greenway Holdings Inc. (the “Company”) (NASDAQ: AGH), an owner and operator of daily fee golf country clubs in the state of Florida, announced today the closing of its initial public offering (the “Offering”) of 3,750,000 shares of its common stock at a public offering price of $4.00 per share for total gross proceeds of $15,000,000, before deducting underwriting discounts and other offering expenses. The shares of common stock of the Company began trading on the Nasdaq Capital Market on February 12, 2025, under the ticker symbol “AGH.” The Offering consisted of 3,000,000 shares of common stock from the Company and 750,000 shares of common stock from certain selling stockholders. The Company did not receive any proceeds from any sale of shares by the selling stockholders.

Dominari Securities, LLC acted as lead underwriter, with Revere Securities LLC acting as the co-underwriter. Ortoli Rosenstadt LLP acted as U.S. securities counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as U.S. securities counsel to the underwriters, in connection with the Offering.

A registration statement on Form S-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333- 280340), as amended, and was declared effective by the SEC on November 12, 2024 and declared effective by the SEC on a post-effective basis on February 10, 2025. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering, when available, may be obtained from Dominari Securities LLC by email at info@dominarisecurities.com, by standard mail to Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor, New York, NY 10022, or by calling (212) 393-4500. In addition, copies of the final prospectus relating to the Offering, when available, 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 information about the Company and the Offering. This press release has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, 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 Aureus Greenway Holdings Inc.
Aureus Greenway Holdings Inc. owns and operates daily fee golf country clubs in the state of Florida that are designed to appeal to a wide-ranging population. The combination of our strategic locations and approachable golf-courses attracts both local and tourist demographics, allowing us to offer a variety of golf experiences while capturing a broad share of discretionary leisure spending. For more information, please visit our website at www.aureusgreenway.com.

Forward-Looking Statements
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 common stock 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.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

FAQ

How much did Aureus Greenway Holdings (AGH) raise in its IPO?

Aureus Greenway Holdings raised $15 million in gross proceeds through its IPO, selling 3,750,000 shares at $4.00 per share.

When did AGH stock begin trading on NASDAQ?

AGH stock began trading on the Nasdaq Capital Market on February 12, 2025.

How many shares did AGH sell in its IPO?

AGH's IPO consisted of 3,750,000 shares total, with 3,000,000 shares from the company and 750,000 shares from selling stockholders.

What was the IPO price for AGH shares?

The public offering price for AGH shares was $4.00 per share.

Who were the underwriters for AGH's IPO?

Dominari Securities acted as lead underwriter, with Revere Securities as co-underwriter.