Click Holdings Limited Announces Pricing of $5.6 Million Initial Public Offering

Rhea-AI Summary

Click Holdings (CLIK), a Hong Kong-based human resources solutions provider, has announced the pricing of its initial public offering (IPO) of 1,400,000 Ordinary Shares at $4.00 per share, resulting in gross proceeds of $5.6 million. The IPO is expected to close on or about October 10, 2024, with trading on the Nasdaq Capital Market under the ticker symbol CLIK starting October 9, 2024. Underwriters have a 45-day option to purchase up to an additional 210,000 shares at the offering price. R.F. Lafferty & Co., Inc. and Revere Securities are acting as the primary underwriter and co-manager, respectively. The offering is conducted under the company's registration statement on Form F-1 declared effective by the SEC on September 30, 2024.

Positive

• IPO priced at $4.00 per share, raising $5.6 million.
• Potential for additional $840,000 from over-allotment option.
• Trading on Nasdaq Capital Market under ticker 'CLIK'.

Negative

• Potential shareholder dilution from additional 210,000 shares.

Insights

Financial Analyst

Click Holdings 's IPO pricing at $4.00 per share for a total of $5.6 million is a significant milestone for the company. The listing on Nasdaq under the symbol "CLIK" provides increased visibility and access to capital markets. However, the relatively small size of the offering suggests a modest valuation and initial investor interest.

Key points to consider:

• The $5.6 million raise is on the smaller end for Nasdaq IPOs, which may limit the company's ability to fund aggressive growth plans.
• The 15% over-allotment option could potentially increase the total raise to $6.44 million if fully exercised.
• As a Hong Kong-based HR solutions provider, CLIK faces competition in a crowded market and investors should closely monitor its ability to differentiate and scale its services.
• The involvement of multiple legal counsels across jurisdictions (U.S., Hong Kong, PRC and BVI) indicates the complexity of the company's structure and operations, which may present both opportunities and risks.

While the IPO provides CLIK with public market access, investors should carefully evaluate the company's growth prospects and competitive position in the HR solutions sector before making investment decisions.

Market Research Analyst

Click Holdings 's IPO represents an interesting entry into the public markets for a niche HR solutions provider. The company's focus on talent sourcing and temporary staffing for specific sectors like accounting firms, nursing homes and logistics companies suggests a targeted business model.

Market implications:

• The Hong Kong base gives CLIK a strategic position to serve the growing Asian market, particularly as companies seek flexible staffing solutions post-pandemic.
• The relatively small IPO size may indicate a cautious approach or scalability, which could impact future growth potential.
• Investor appetite for HR tech and staffing solutions has been mixed, with some companies seeing strong growth while others struggle with market saturation.
• CLIK's success will likely depend on its ability to leverage technology and expand its service offerings to compete with larger, more established players in the HR solutions space.

While the IPO provides CLIK with capital for potential expansion, the company will need to demonstrate strong execution and market penetration to justify its valuation and attract further investor interest in the competitive HR solutions sector.

Hong Kong, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Click Holdings Limited (“CLIK” or the “Company”), a Hong Kong-based human resources solutions provider primarily focusing on talent sourcing and the provision of temporary and permanent personnel to customers including accounting and professional firms, Hong Kong-listed companies, nursing homes, individual patients, logistics companies and warehouses, today announced the pricing of its firm commitment initial public offering of an aggregate 1,400,000 Ordinary Shares (the “Offering”). The Offering is priced at $4.00 per share (the “Offering Price”) for gross proceeds of $5.6 million to the Company, before deducting underwriting discounts and offering expenses.

The Company has granted the underwriters an option, exercisable for 45 days from the closing of this Offering, to purchase up to an additional 210,000 Ordinary Shares at the Offering Price, representing 15% of the Ordinary Shares sold in the Offering (the “Over-allotment”).

The Ordinary Shares are expected to begin trading on the Nasdaq Capital Market under the ticker symbol “CLIK” on October 9, 2024. The Offering is expected to close on or about October 10, 2024, subject to the satisfaction of customary closing conditions.

R.F. Lafferty & Co., Inc. (“Lafferty”), a full-service broker/dealer, is acting as the primary underwriter for the Offering. Revere Securities LLC (“Revere”), a full-service broker/dealer, is acting as the co-manager for the Offering. Dorsey & Whitney LLP, David Fong & Co, Beijing Dacheng Law Offices, LLP (Shenzhen) and Ogier are acting as U.S., Hong Kong, PRC, and BVI legal counsels to the Company, respectively. Wei, Wei & Co., LLP is acting as the independent accountants of the Company. VCL Law LLP is acting as the U.S. legal counsel to Lafferty and Revere for the Offering.

The Offering is being conducted pursuant to the Company’s registration statement on Form F-1 (File No. 333-280522), as amended, which was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on September 30, 2024. The Offering is being made only by means of a prospectus, forming part of the registration statement. 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. Copies of the final prospectus related to the Offering may be obtained, when available, from R.F. Lafferty & Co., Inc., 40 Wall Street, 27^th Floor, New York, NY 10005, by phone at +1 212 293 9090 or by email at offerings@rflafferty.com; or Revere Securities LLC, 560 Lexington Ave 16th floor, New York, NY, 10022, by phone at +1 212 688 2350 or by email at contact@reveresecurities.com. In addition, a copy of the final prospectus, when available, relating to the Offering may be obtained via the SEC’s website at www.sec.gov.

This press release has been prepared for informational purposes only and shall 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 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 other jurisdiction.

About Click Holdings Limited

Click Holdings Limited is a human resources solutions provider, specializing in offering comprehensive human resources solutions in three principal sectors, namely (i) professional solution services, (ii) nursing solution services, and (iii) logistics and other solution services. We are primarily focused on talent sourcing and the provision of temporary and permanent personnel to customers. Our primary market is in Hong Kong and our diverse clientele includes accounting and professional firms, Hong Kong listed companies, nursing homes, individual patients, logistics companies and warehouses. We specialize primarily in placing professional accountants and company secretaries, registered nurses and healthcare workers, as well as other blue-collar workers, for direct hire and contract staffing roles. For more information, please visit www.clicksc.com.hk.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus 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. Any forward-looking statements contained in this press release speak only as of the date hereof, and Click Holdings Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

For more information, please contact:

offerings@rflafferty.com
Equity Capital Markets
R. F. Lafferty & Co., Inc.
40 Wall Street, 27th Floor, 
New York, NY 10005
212.293.9090

FAQ

What is the ticker symbol for Click Holdings 's IPO?

The ticker symbol for Click Holdings 's IPO is 'CLIK'.

How much is Click Holdings raising from its IPO?

Click Holdings is raising $5.6 million from its IPO.

When will Click Holdings start trading on Nasdaq?

Click Holdings will start trading on Nasdaq on October 9, 2024.

What is the price per share for Click Holdings 's IPO?

The price per share for Click Holdings 's IPO is $4.00.

How many shares are being offered in Click Holdings 's IPO?

Click Holdings is offering 1,400,000 Ordinary Shares in its IPO.