Creative Global Technology Holdings Limited Announces Closings of Its Initial Public Offering and the Underwriter’s Over-Allotment Option

Rhea-AI Summary

Creative Global Technology Holdings (CGTL), a Hong Kong-based company specializing in recycled consumer electronics, has completed its initial public offering on the Nasdaq Capital Market. The company sold 1,250,000 ordinary shares at $4.00 per share, raising $5,000,000 in gross proceeds. Additionally, CGTL raised $750,000 through the full exercise of the underwriter's over-allotment option of 187,500 shares. Trading began on November 26, 2024, under the symbol 'CGTL'. The proceeds will fund general corporate purposes, wholesale business expansion, retail growth, overseas market development, and a repair facility establishment.

Positive

• Successfully raised $5.75M in total gross proceeds through IPO and over-allotment
• Full exercise of over-allotment option indicates strong initial demand
• Listing on Nasdaq Capital Market provides access to broader capital markets
• Clear expansion strategy including wholesale, retail, and international markets

Negative

• Significant offering expenses and underwriting discounts will reduce net proceeds
• Potential shareholder dilution from new share issuance
• Competitive market entry as a small-cap company

Insights

Financial Analyst

This IPO marks a significant milestone for CGTL, raising $5.75 million in total gross proceeds through the initial offering and full exercise of the over-allotment option at $4.00 per share. The company's focus on recycled consumer electronics positions it well in the growing sustainable technology market. The planned use of proceeds shows a clear growth strategy across multiple dimensions:

• Wholesale business expansion and auction market development
• Retail business growth
• Strategic overseas market entry
• Establishment of repair and refurbishment facilities

While the modest offering size suggests a cautious market entry, the full exercise of the over-allotment option indicates strong initial investor interest. However, investors should note that as a newly listed small-cap company ($212 million market cap), CGTL may face typical challenges including stock volatility and liquidity constraints.

Hong Kong, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Creative Global Technology Holdings Limited (the “Company” or “CGTL”), a Hong Kong-based company sourcing and reselling recycled consumer electronic devices, today announced the closing of its initial public offering (the “Offering”) of 1,250,000 ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share for total gross proceeds of $5,000,000, before deducting underwriting discounts and other offering expenses. The Offering closed on November 27, 2024, and the Ordinary Shares commenced trading on Nasdaq Capital Market on November 26, 2024, under the ticker symbol “CGTL”.

The Company also closed the sale of an additional 187,500 ordinary shares pursuant to the full exercise of the underwriter’s over-allotment option granted in connection with the Company’s Offering, at the public offering price of $4.00 per share. As a result, the Company has raised gross proceeds of $750,000 in addition to the IPO gross proceeds of $5,000,000, before deducting underwriting discounts and offering expenses.

The Offering is being conducted on a firm commitment basis. Benjamin Securities, Inc. acted as the representative of the underwriters, with Prime Number Capital, LLC acted as the co-manager (collectively, the “Underwriters”) for the Offering. Jun He Law Offices LLC acted as U.S. counsel to the Company, and Winston & Strawn LLP acted as U.S. counsel to the underwriter, in connection with the Offering.

The Company intends to use the proceeds from this Offering for general corporate purposes and to expand the wholesale business and develop a wholesale auction market, expand its retail business, expand into strategic overseas markets, and build a repair and refurbishment factory.

A registration statement on Form F-1 (File No. 333-273329) relating to the Offering, as amended, has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on November 18, 2024. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, from Benjamin Securities, Inc.: 3 West Garden Street Suite 407 Pensacola, FL 32502, or via email at info@benjaminsecurities.com or telephone at (516) 931-1090. In addition, a copy of the final prospectus can also 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 shall not constitute an offer to sell or the solicitation of an offer to buy 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 Creative Global Technology Holdings Limited

Creative Global Technology Holdings Limited is dedicated to extending the life of consumer electronics through effective recycling, supporting a sustainable circular economy and reducing electronic waste. The Company connects supply and demand for pre-owned devices, maximizing their utility. Specializing in sourcing and reselling recycled smartphones, tablets, and laptops, CGTL facilitates the flow of retired devices from affluent markets like the U.S. and Japan to developing regions in need of affordable technology. With a lean inventory and efficient logistics, CGTL ensures quick inspection and availability for clients. CGTL has also expanded into retail sales and device rentals, providing Hong Kong residents access to quality recycled electronics and meeting short-term needs. For more information, please visit: http://www.cgt-recycle.com; https://ir.cgt-recycle.com/.

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Underwriters

Benjamin Securities, Inc.
(516) 931-1090
info@benjaminsecurities.com

Prime Number Capital, LLC
(516)717-5671
info@pncps.com

Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

FAQ

How much did CGTL raise in its IPO including over-allotment?

CGTL raised total gross proceeds of $5.75 million, consisting of $5 million from the initial offering and $750,000 from the over-allotment option.

What is CGTL's IPO price per share?

CGTL's IPO price was set at $4.00 per ordinary share.

When did CGTL begin trading on Nasdaq?

CGTL began trading on the Nasdaq Capital Market on November 26, 2024.

How will CGTL use its IPO proceeds?

CGTL plans to use the proceeds for general corporate purposes, expanding wholesale and retail operations, developing a wholesale auction market, entering strategic overseas markets, and building a repair facility.