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

Rhea-AI Summary

Autozi Internet Technology (Global) (NasdaqGM: AZI), a leading lifecycle automotive service provider in China, has announced the pricing of its initial public offering. The company is offering 2,500,000 Class A ordinary shares at US$4 per share, aiming to raise approximately $10 million in gross proceeds. Trading is expected to commence on August 28, 2024, under the symbol "AZI" on the Nasdaq Global Market. The underwriter has been granted an option to purchase up to an additional 375,000 shares. Kingswood Capital Partners, is acting as the sole book runner for the offering, which is expected to close on August 29, 2024, subject to customary conditions.

Positive

• Initial public offering (IPO) successfully priced at $4 per share
• Expected to raise approximately $10 million in gross proceeds
• Listing on the Nasdaq Global Market, potentially increasing visibility and liquidity
• Option for underwriter to purchase additional shares, potentially increasing total proceeds

Negative

• Potential dilution of existing shareholders' ownership
• Relatively small offering size may limit institutional investor interest
• Additional expenses related to being a public company may impact profitability

Financial Analyst

Autozi's IPO pricing at $4 per share, raising $10 million, is a significant milestone but falls on the lower end of typical tech IPOs. The modest size suggests cautious investor sentiment or a strategic decision to limit dilution. The firm commitment underwriting indicates some confidence in the offering, but the relatively small size may limit initial liquidity.

The option for underwriters to purchase additional shares could potentially increase proceeds by $1.5 million, providing some flexibility. However, the overall raise is relatively small for a Nasdaq-listed company, which may impact the company's ability to fund aggressive growth strategies in the competitive Chinese automotive service market.

Investors should closely monitor post-IPO performance and the company's ability to leverage this capital for growth in the rapidly evolving Chinese automotive sector.

Market Research Analyst

Autozi's IPO reflects growing interest in China's automotive services sector, which is experiencing rapid transformation due to increased car ownership and digitalization. As a "leading and fast-growing" player, Autozi is positioning itself to capitalize on this trend.

However, the modest IPO size raises questions about the company's market position and growth potential. Investors should consider:

• Autozi's market share and competitive advantages in the Chinese market
• The company's technology offerings and how they differentiate from competitors
• Potential regulatory risks in the Chinese tech and automotive sectors

The IPO's reception will be a key indicator of investor appetite for Chinese tech companies amid ongoing market volatility and regulatory scrutiny. Watch for early trading patterns and volume to gauge market sentiment.

Legal Expert

The IPO's compliance with SEC regulations, including the effective F-1 registration and the provision of a final prospectus, demonstrates Autozi's commitment to transparency and regulatory adherence. This is important for a Chinese company listing on a U.S. exchange, given recent scrutiny of such listings.

Key legal considerations for investors include:

• Potential risks related to the VIE (Variable Interest Entity) structure often used by Chinese companies
• Compliance with both U.S. and Chinese regulations, including data security laws
• The company's corporate governance structure and shareholder rights

The involvement of reputable legal counsel (DLA Piper UK LLP) is a positive sign, but investors should thoroughly review the prospectus for any risk factors or regulatory concerns specific to Autozi's operations in China.

BEIJING, Aug. 27, 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 pricing 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 for total gross proceeds of approximately $10 million, before deducting underwriting discounts and commissions and offering expenses. The Offering is being conducted on a firm commitment basis. The Class A ordinary shares have been approved for listing on the Nasdaq Global Market under the symbol "AZI", and are expected to commence trading on August 28, 2024.

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 is expected to close on August 29, 2024, subject to customary closing conditions.

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

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 subsequently 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 will be filed with the SEC and will be available on the SEC's website at www.sec.gov.  Electronic copies of the final prospectus related to the Offering may be obtained, when available, from Kingswood Capital Partners, LLC, 126 E 56th St, Suite 22S, or by telephone at +1 732-910-9692.

Before you invest, you should read the final 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 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, including but not limited to, the Company's proposed Offering and the listing of its securities. 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, including the expectation that the Offering will be successfully completed. 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 is the IPO price for Autozi (AZI) shares?

Autozi (AZI) has priced its initial public offering at US$4 per Class A ordinary share.

How many shares is Autozi (AZI) offering in its IPO?

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

When will Autozi (AZI) start trading on the Nasdaq?

Autozi (AZI) is expected to commence trading on the Nasdaq Global Market on August 28, 2024.

What is the expected gross proceeds from Autozi's (AZI) IPO?

Autozi (AZI) expects to raise approximately $10 million in gross proceeds from its initial public offering.

Who is the underwriter for Autozi's (AZI) IPO?

Kingswood Capital Partners, is acting as the sole book runner for Autozi's (AZI) initial public offering.