CCSC Technology International Holdings Limited Announces Pricing of Initial Public Offering
- None.
- None.
Insights
The initial public offering (IPO) of CCSC Technology International Holdings Limited represents a significant milestone for the company and has the potential to influence investor portfolios and the broader market in which the company operates. The pricing of the IPO at US$4.00 per share, with an aim to raise US$5.5 million, is a strategic decision that warrants analysis. The capital raised through this offering will likely be earmarked for business expansion, research and development, or debt reduction. It is crucial to consider the company's valuation in the context of its industry peers and the price-to-earnings (P/E) ratio to assess the attractiveness of the offering to potential investors.
Furthermore, the option granted to underwriters to purchase additional shares could provide a safety net against initial market volatility and may help in stabilizing the stock price post-IPO. However, it's important to note that the performance of IPOs can be unpredictable and investors should be aware of the risks associated with investing in newly public companies, including potential liquidity issues and price volatility.
The interconnect products industry is a critical component of the larger electronics sector, serving as the backbone for various applications in consumer electronics, automotive and industrial markets. The demand for connectors, cables and wire harnesses is often correlated with the health of these sectors. The decision by CCSC to list on the Nasdaq Capital Market could be indicative of the company's international expansion ambitions and its confidence in appealing to a global investor base.
An analysis of the industry trends, such as the shift towards high-speed connectivity and the adoption of advanced technologies in the automotive sector, is essential to understand CCSC's growth prospects. The company's success will hinge on its ability to innovate and maintain competitive pricing in a market that is both price-sensitive and rapidly evolving due to technological advancements.
The legal considerations surrounding an IPO are extensive and CCSC's offering must comply with stringent regulations set forth by the Securities and Exchange Commission (SEC) and Nasdaq listing requirements. The transparency and disclosures provided in the company's prospectus are critical for investor trust and can have legal implications if not accurately presented. Investors should be aware of the legal framework governing the offering, including any risks disclosed by the company and consider how these might impact the company's future operations and financial performance.
Additionally, the 45-day option for underwriters to purchase additional shares is a common practice known as an over-allotment option, which can be exercised to manage excess demand and provide additional capital to the company if needed. The legal structure of this option and its implications for shareholders should be understood by investors, as it can affect the total number of shares outstanding and the earnings per share (EPS) post-IPO.
Hong Kong, Jan. 18, 2024 (GLOBE NEWSWIRE) -- CCSC Technology International Holdings Limited (the “Company” or “CCSC”), 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 pricing of its initial public offering (the “Offering”) of 1,375,000 ordinary shares at a public offering price of US
The Company expects to receive 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 is being conducted on a firm commitment basis. Revere Securities LLC is acting as the representatives of the underwriters for the Offering. Hunter Taubman Fischer & Li LLC is acting as U.S. securities counsel to the Company, and Becker & Poliakoff, LLP is acting as U.S. counsel to Revere Securities LLC 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 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 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. 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 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, including the expectation that the Offering will be successfully completed. 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
FAQ
What is the ticker symbol for CCSC Technology International Holdings Limited?
How many ordinary shares were offered in CCSC's initial public offering?
What is the public offering price per ordinary share in CCSC's IPO?
When is the expected trading commencement date for CCSC's ordinary shares?
How much gross proceeds does CCSC expect to receive from the Offering?
