BloomZ Inc. Announces Closing of $5.38 Million Initial Public Offering

Rhea-AI Summary

BloomZ Inc. (NASDAQ:BLMZ) has successfully closed its initial public offering (IPO) of 1,250,000 ordinary shares at $4.30 per share, raising approximately $5.38 million in gross proceeds. The company's shares began trading on the Nasdaq Capital Market on July 24, 2024, under the symbol 'BLMZ'. Network 1 Financial Securities, Inc. acted as the sole book-running manager for the offering. BloomZ has granted the underwriters a 45-day option to purchase up to an additional 187,500 ordinary shares to cover over-allotments. The IPO was conducted pursuant to the company's registration statement on Form F-1, which was declared effective on July 1, 2024.

Positive

• Successful completion of IPO raising $5.38 million in gross proceeds
• Listing on Nasdaq Capital Market, potentially increasing visibility and liquidity
• 45-day option granted to underwriters for additional shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders' ownership due to new share issuance
• Offering expenses and underwriting discounts will reduce net proceeds from the IPO

Financial Analyst

BloomZ Inc.'s successful IPO marks a significant milestone for the company, raising $5.38 million in gross proceeds. This capital injection could provide the necessary funds for expansion and growth initiatives. However, it's important to note that the offering size is relatively small compared to many tech IPOs, which might limit the company's immediate financial flexibility.

The $4.30 per share pricing suggests cautious market sentiment, possibly reflecting the current challenging economic environment for tech startups. The additional 45-day option for underwriters to purchase up to 187,500 more shares could potentially increase the total raised to about $6.18 million if fully exercised, providing some additional liquidity.

Investors should be aware that newly listed companies often face volatility in their early trading days. The involvement of Network 1 Financial Securities as the sole book-running manager, while providing necessary support, also indicates a more niche offering that may not have attracted larger, more established underwriters. This could impact the stock's liquidity and price stability in the short term.

Overall, while the successful IPO is a positive step for BloomZ, the relatively modest size of the offering suggests that the company may need to demonstrate strong financial performance and growth to attract further investor interest and potentially raise additional capital in the future.

Market Research Analyst

BloomZ's IPO comes at a time when the tech IPO market has been relatively quiet, making this listing noteworthy. The company's ability to go public in the current economic climate, characterized by high interest rates and investor caution, is commendable. However, the modest size of the offering – $5.38 million – suggests that BloomZ is still in its early stages and may face challenges in a competitive tech landscape.

The choice of NASDAQ for listing is strategic, as it's known for hosting innovative tech companies. This could provide BloomZ with increased visibility and access to a broader investor base. However, the company will need to meet NASDAQ's stringent reporting and governance requirements, which could be resource-intensive for a smaller firm.

Interestingly, the involvement of HeartCore Enterprises and Spirit Advisors as IPO consultants indicates that BloomZ sought specialized guidance for navigating the public markets. This could be seen as a prudent move for a company potentially lacking extensive in-house experience with public offerings.

Looking ahead, BloomZ's performance will be closely watched by investors interested in emerging tech companies. The company's ability to effectively utilize the raised capital and demonstrate growth will be important in maintaining investor confidence and potentially facilitating future fundraising efforts. The tech sector's volatility and the current macroeconomic uncertainties add layers of complexity to BloomZ's journey as a newly public company.

TOKYO, JAPAN / ACCESSWIRE / July 25, 2024 / BloomZ Inc. (NASDAQ:BLMZ) ("BloomZ" or the "Company"), today announced the closing of its initial public offering of 1,250,000 ordinary shares (the "Ordinary Shares") at a public offering price of $4.30 per share, for aggregate gross proceeds of approximately $5.38 million, prior to deducting underwriting discounts and other offering expenses. The Company's Ordinary Shares began trading on the Nasdaq Capital Market on July 24, 2024, under the symbol "BLMZ".

In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 187,500 Ordinary Shares at the public offering price per share, less the underwriting discount, to cover over-allotments, if any.

Network 1 Financial Securities, Inc. ("Network 1"), a full-service broker/dealer, acted as the sole book-running manager for the offering. HeartCore Enterprises, Inc. and Spirit Advisors LLC served as financial advisors and IPO consultants for the Company. Hunter Taubman Fischer & Li LLC is acting as U.S. legal counsel to BloomZ and Loeb & Loeb LLP is acting as U.S. legal counsel to Network 1 for the offering.

The offering is being conducted pursuant to the Company's registration statement on Form F-1, as amended (File No. 333-275223), relating to the Ordinary Shares initially filed with the U.S. Securities and Exchange Commission (the "SEC") on October 31, 2023, and was declared effective on July 1, 2024. The offering was made only by means of a prospectus. A final prospectus relating to the offering has been filed with the SEC on July 23, 2024, and is available on the SEC's website at www.sec.gov. Copies of the final prospectus related to the Offering may be obtained from Network 1 Financial Securities, Inc., 2 Bridge Avenue, Suite 241, Red Bank, NJ 07701, by phone at 732-758-9001 or by email at BLMZIPO@netw1.com.

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 shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 BloomZ Inc.

BloomZ is a Cayman Islands holding company with an operating subsidiary, Kabushiki Kaisha BloomZ ("BloomZ Japan"), in Japan. BloomZ Japan is a Japanese audio producing and voice actor and VTuber managing company. BloomZ Japan has experienced staff who have worked on audio production for animations and video games for more than 10 years. BloomZ Japan also manages, cultivates and promotes voice actors and VTubers.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the expected gross proceeds and the closing of the offering. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the SEC, including, but not limited to, the risks detailed in the Company's preliminary prospectus (Registration No. 333-275223), initially filed with the SEC on October 31, 2023. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

BloomZ Investor Contact

John Yi and Steven Shinmachi
Gateway Group, Inc.
949-574-3860
Email: bloomz@gateway-grp.com

SOURCE: BloomZ

View the original press release on accesswire.com

FAQ

How much did BloomZ Inc. (BLMZ) raise in its IPO?

BloomZ Inc. (BLMZ) raised approximately $5.38 million in gross proceeds from its initial public offering.

What was the IPO price for BloomZ Inc. (BLMZ) shares?

The public offering price for BloomZ Inc. (BLMZ) shares was $4.30 per ordinary share.

When did BloomZ Inc. (BLMZ) start trading on the Nasdaq?

BloomZ Inc. (BLMZ) began trading on the Nasdaq Capital Market on July 24, 2024.

How many shares did BloomZ Inc. (BLMZ) offer in its IPO?

BloomZ Inc. (BLMZ) offered 1,250,000 ordinary shares in its initial public offering.