Autozi Internet Technology (Global) Ltd. Announces Closing of Initial Public Offering

Rhea-AI Summary

Autozi Internet Technology (Global) (NasdaqGM: AZI), a leading lifecycle automotive service provider in China, has successfully closed its initial public offering. The company offered 2,500,000 Class A ordinary shares at US$4 per share, raising gross proceeds of US$10 million. Trading began on the Nasdaq Capital Market under the ticker symbol 'AZI' on August 28, 2024. Autozi plans to use the net proceeds to enhance supply chain management, expand its MBS stores network, invest in technology innovations, and for general corporate purposes. Kingswood Capital Partners, acted as the sole book runner for the offering, which was conducted on a firm commitment basis.

Positive

• Successfully raised US$10 million in gross proceeds from IPO
• Listing on Nasdaq Capital Market enhances company visibility and potential for investor interest
• Funds allocated for supply chain improvement and business expansion
• Option granted to underwriter to purchase additional 375,000 shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders' equity due to new share issuance
• Increased regulatory scrutiny and compliance costs associated with being a public company

Financial Analyst

Autozi's IPO marks a significant milestone, raising $10 million in gross proceeds. This capital injection positions the company for strategic growth in China's automotive service sector. The pricing at $4 per share and the 2.5 million shares offered suggest moderate market interest. The additional 375,000 share option for underwriters could potentially boost total proceeds to $11.5 million.

The planned use of funds for supply chain enhancement, MBS store expansion and tech innovation aligns with industry trends towards digitalization and service network growth. However, investors should note that the relatively modest IPO size may limit the scale of these initiatives. The firm commitment underwriting structure provides some assurance, but the true test will be Autozi's ability to execute its growth strategy efficiently in a competitive market.

Market Research Analyst

Autozi's IPO reflects growing investor interest in China's automotive aftermarket sector. As one of the "leading and fast-growing" players, Autozi is capitalizing on the expanding car ownership base and increasing demand for maintenance services in China. The company's focus on lifecycle services positions it well in a market transitioning from new car sales to long-term vehicle care.

However, the modest IPO size raises questions about Autozi's market share and growth potential compared to larger competitors. Investors should monitor key performance indicators like store network expansion rate, customer acquisition costs and technology adoption metrics to gauge Autozi's ability to capture market share. The success of this IPO could potentially trigger a wave of similar listings in the sector, increasing competition for investor attention and capital.

Legal Expert

The successful completion of Autozi's IPO, with the SEC declaring the registration statement effective, demonstrates compliance with U.S. securities regulations. This is important for a Chinese company listing on Nasdaq, given recent regulatory scrutiny. The inclusion of a 45-day option for additional shares is a standard practice that provides flexibility for market demand.

Investors should note the "firm commitment" underwriting, which reduces risk for the issuer but may impact share price stability post-IPO. The disclaimer regarding the press release not constituting an offer to sell is a legal safeguard. Potential investors must rely on the prospectus filed with the SEC for complete information. As with any foreign listing, investors should be aware of potential regulatory risks and differences in accounting standards between China and the U.S.

BEIJING, Aug. 29, 2024 /PRNewswire/ -- Autozi Internet Technology (Global) Ltd. ("Autozi" or the "Company") (NasdaqGM: AZI), one of the leading and fast-growing lifecycle automotive service providers in China, today announced the closing of its initial public offering (the "Offering") of 2,500,000 Class A ordinary shares at a public offering price of US$4 per Class A ordinary share. The Class A ordinary shares began trading on Nasdaq Capital Market under the ticker symbol "AZI" on August 28, 2024.

The Company received aggregate gross proceeds of US$10 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriter of the Offering an option, exercisable within 45 days from the date of the underwriting agreement, to purchase up to an additional 375,000 Class A ordinary shares at the public offering price, less underwriting discounts and commissions. The Offering was conducted on a firm commitment basis.

Net proceeds from the Offering will be used for enhancing our supply chain management capabilities, expanding the size and coverage of our MBS stores network, investment in technology innovations, and general corporate purposes.

Kingswood Capital Partners, LLC acted as sole book runner for the Offering. DLA Piper UK LLP served as U.S. counsel to the Company. VCL Law LLP served as U.S. counsel to the underwriter.

A registration statement on Form F-1 (File No. 333-281215), relating to the Offering was previously filed with the U.S. Securities and Exchange Commission ("SEC") by the Company, and was declared effective by the SEC on August 27, 2024. The Offering is being made only by means of a prospectus, forming a part of the registration statement. A final prospectus relating to the Offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus related to the Offering may be obtained from Kingswood Capital Partners, LLC, 126 E 56th St, Suite 22S, or by telephone at +1 732-910-9692.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company's securities described herein, nor shall there be any sale of the Company's 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 Autozi Internet Technology (Global) Ltd.

Autozi Internet Technology (Global) Ltd. is one of the leading and fast-growing lifecycle automotive service providers in China. Autozi, founded in 2010, provides high-quality, affordable and professional one-stop automotive products and services through online and offline channels nationwide. Our business segments include (i) new car sales, (ii) auto parts and auto accessories sales, and (iii) automotive insurance related services. Leveraging our online supply chain cloud platform, SaaS platforms, and the network of multiple-brand-service (MBS) stores, we have established an ecosystem of lifecycle automotive services by connecting automotive manufacturers, auto parts manufactures, and insurance companies with MBS stores and various automotive owners. For more information, visit the Company's website at https://www.autozi.com/en/investor.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. 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 in its other filings with the SEC.

For more information, please contact:

Investor Relations: 
Sherry Zheng
Weitian Group LLC
Phone: 718-213-7386
Email: shunyu.zheng@weitian-ir.com 

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SOURCE Autozi Internet Technology (Global) Ltd.

FAQ

What was the IPO price for Autozi (AZI) shares?

Autozi (AZI) offered its Class A ordinary shares at a public offering price of US$4 per share in its initial public offering.

How many shares did Autozi (AZI) offer in its IPO?

Autozi (AZI) offered 2,500,000 Class A ordinary shares in its initial public offering.

When did Autozi (AZI) begin trading on the Nasdaq?

Autozi (AZI) began trading on the Nasdaq Capital Market under the ticker symbol 'AZI' on August 28, 2024.

How much did Autozi (AZI) raise in its IPO?

Autozi (AZI) raised gross proceeds of US$10 million from its initial public offering.

What will Autozi (AZI) use the IPO proceeds for?

Autozi (AZI) plans to use the net proceeds to enhance supply chain management, expand its MBS stores network, invest in technology innovations, and for general corporate purposes.