CCSC Technology International Holdings Limited Announces Closing of Initial Public Offering
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The initial public offering (IPO) of CCSC Technology International Holdings Limited represents a significant capital infusion for the company, which could potentially enhance shareholder value. The IPO's pricing at $4.00 per share and the subsequent trading on the Nasdaq Capital Market indicate investor confidence and market validation for CCSC's business model and growth prospects. The gross proceeds of $5.5 million, before expenses, provide a substantial resource for the company's stated aims of upgrading facilities, expanding marketing and sales and investing in research and development. Investors should note the firm commitment basis of the offering, which underscores the underwriters' confidence in the company's ability to sell its shares.
Strategic acquisitions and collaboration efforts, as outlined in the use of proceeds, could lead to synergies and diversification, potentially mitigating risks and fostering innovation. However, investors should monitor the company's execution of its stated plans to gauge the effectiveness of the capital allocation. Additionally, the option granted to underwriters to purchase additional shares could dilute existing shareholders but also provide a cushion for additional capital if the stock performs well.
The interconnect product sector is a competitive industry with constant demand for innovation and efficiency improvements. CCSC's decision to allocate IPO proceeds towards operational upgrades and IT systems is a strategic move to stay competitive. By enhancing production capacity, CCSC aims to meet growing customer demands and scale its operations effectively. The focus on marketing and expanding the sales team is equally important for revenue growth and market penetration.
Research and development, crucial for maintaining technological leadership, could lead to the development of new products or improvements in existing ones, which is vital for sustaining long-term growth. The recruitment and cultivation of engineering talent will be key to achieving these R&D goals. Investors should track the company's R&D progress as it can be a strong indicator of future product pipelines and potential market expansion.
CCSC's compliance with SEC regulations, as evidenced by the effective registration statements, is a critical aspect of the offering. This adherence to legal requirements provides a level of assurance to investors regarding the legitimacy of the offering and the company's commitment to transparency. The involvement of reputable legal counsel in the IPO process helps mitigate legal risks and ensures that the offering adheres to U.S. securities laws.
The disclaimer regarding the sale of securities highlights the regulatory framework within which the company must operate. It is important for investors to understand that such disclaimers are standard and serve to protect both the company and the investors from potential legal issues related to the offering. The role of underwriters' counsel is also significant in ensuring that all legal aspects of the offering are managed effectively, reducing the risk of post-IPO legal challenges.
Hong Kong, Jan. 22, 2024 (GLOBE NEWSWIRE) -- CCSC Technology International Holdings Limited (the “Company” or “CCSC”) (Nasdaq: CCTG), a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products, including connectors, cables and wire harnesses, today announced the closing of its initial public offering (the “Offering”) of 1,375,000 ordinary shares at a public offering price of US
The Company received aggregate gross proceeds of US
Proceeds from the Offering will be used primarily for the following: upgrading facility and management system (including IT system) to enhance operational efficiency and increase production capacity; marketing efforts and expanding sales team; research and development (including recruitment and cultivating of engineering talents, strategic acquisitions and collaborations); strategic acquisitions and collaborations; and working capital and other general corporate purposes.
The Offering was conducted on a firm commitment basis. Revere Securities LLC and R.F. Lafferty & Co., Inc. (the “Underwriters”) acted as the Underwriters for the Offering. Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to the Company, and Becker & Poliakoff, LLP acted as U.S. counsel to the Underwriters in connection with the Offering.
Registration statements on Form F-1 relating to the Offering were filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Numbers: 333-270741 and 333-276545), as amended, and were declared effective by the SEC on December 28, 2023 and January 17, 2024. The Offering was made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering may be obtained from Revere Securities LLC, Inc. by email at contact@reveresecurities.com, by standard mail to Revere Securities LLC, 650 Fifth Avenue, 35th Floor, New York, NY 10019 USA, or by telephone at (212) 688-2238; or from R.F. Lafferty & Co., Inc. by email at offerings@rflafferty.com, by standard mail to R.F. Lafferty & Co., Inc., 40 Wall Street, 29th Floor, New York, NY 10005 USA, or by telephone at (212) 293-9090. In addition, copies of the final prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Company’s securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation, or sale of any 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 such state or jurisdiction.
About CCSC Technology International Holdings Limited
CCSC Technology International Holdings Limited, is a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products. The Company specializes in customized interconnect products, including connectors, cables and wire harnesses that are used for a range of applications in a diversified set of industries, including industrial, automotive, robotics, medical equipment, computer, network and telecommunication, and consumer products. The Company produces both OEM (“original equipment manufacturer”) and ODM (“original design manufacture”) interconnect products for manufacturing companies that produce end products, as well as electronic manufacturing services (“EMS”) companies that procure and assemble products on behalf of such manufacturing companies. The Company has a diversified global customer base located in more than 25 countries throughout Asia, Europe and the Americas. For more information, please visit the Company’s website: http://ir.ccsc-interconnect.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue”, or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any 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 other filings with the SEC.
For more information, please contact:
CCSC Technology International Holdings Limited
Investor Relations Department
Email: ir@ccsc-interconnect.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
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