Decent Holding Inc. Announces Closing of Initial Public Offering

Rhea-AI Summary

Decent Holding (Nasdaq: DXST), a Chinese wastewater treatment services provider, announced the closing of its Initial Public Offering of 1,250,000 ordinary shares at $4.00 per share, raising $5 million in gross proceeds. Trading began on Nasdaq Capital Market on January 22, 2025, under the ticker 'DXST', with the offering closing on January 23, 2025.

The company granted underwriters a 45-day option to purchase up to 187,500 additional shares to cover over-allotments. The net proceeds will fund business expansion, R&D initiatives, river water quality management services, wastewater treatment technology upgrades, and talent recruitment.

Craft Capital Management and D. Boral Capital served as underwriters for the firm commitment offering.

Positive

• Successfully completed IPO raising $5 million in gross proceeds
• Achieved Nasdaq Capital Market listing
• Potential for additional $750,000 through over-allotment option
• Clear allocation strategy for proceeds focusing on growth and R&D

Negative

• Relatively small IPO size indicating initial market capitalization
• Potential dilution if over-allotment option is exercised

Insights

IPO & Financial Markets Analyst

The $5 million IPO of Decent Holding Inc. represents a modest but strategic capital raise in the current market environment. The pricing at $4.00 per share and the relatively small float of 1.25 million shares suggests a careful approach to public market entry, potentially limiting initial trading volatility while establishing a foundation for future capital raises.

Several key aspects warrant attention: First, the firm commitment underwriting structure, rather than a best-efforts basis, indicates strong underwriter confidence in the offering. Second, the 45-day over-allotment option for additional 187,500 shares provides flexibility to address excess demand and stabilize early trading.

The planned allocation of proceeds reveals a comprehensive growth strategy focusing on three critical areas:

• Technology development and R&D investment to enhance competitive positioning
• Business expansion in river water quality management, indicating market diversification
• Talent acquisition in R&D and management to support scaling operations

While the IPO size is relatively small for a Nasdaq listing, it reflects a pragmatic approach given current market conditions and investor sentiment toward Chinese companies. The successful listing provides Decent with access to US capital markets for future financing needs, though investors should note the evolving regulatory landscape for Chinese companies listed in the US.

The focus on wastewater treatment aligns with China's environmental priorities and regulatory push for improved water quality management, potentially positioning the company to capitalize on significant market opportunities in environmental services.

Yantai, China, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Decent Holding Inc. (Nasdaq: DXST) (the “Company”), an established wastewater treatment services provider in China, 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 aggregate gross proceeds of $5 million, before deducting underwriting discounts and other offering expenses. The Ordinary Shares commenced trading on Nasdaq Capital Market on January 22, 2025, under the ticker symbol “DXST”. The Offering closed on January 23, 2025.

In addition, the Company has granted the underwriters an option, exercisable within 45 days from the closing date of the Offering, to purchase up to an additional 187,500 Ordinary Shares at the public offering price, less underwriting discounts, to cover over-allotments, if any.

The Company intends to use the net proceeds from the Offering for (i) business expansion; (ii) research and development; (iii) promoting the river water quality management service and expanding the treatment scope of river water; (iv) development and upgrade of wastewater treatment technology; and (v) recruiting talents in research and development and management.

The Offering was conducted on a firm commitment basis. Craft Capital Management LLC and D. Boral Capital LLC acted as underwriters (the “Underwriters”) for the Offering. Ortoli Rosenstadt LLP acted as U.S. securities counsel to the Company, and The Crone Law Group, P.C. acted as U.S. securities counsel to the Underwriters, in connection with the Offering.

A registration statement on Form F-1 (File No. 333-282509) relating to the Offering, as amended, was previously filed with the U.S. Securities and Exchange Commission (the “SEC“) and was declared effective by the SEC on January 21, 2025. The Offering is being made only by means of a prospectus. Copies of the prospectus related to the Offering may be obtained from Craft Capital Management LLC by standard mail to Craft Capital Management LLC, 377 Oak St, Lower Concourse, Garden City, NY 11530, or via email at info@craftcm.com or by telephone at +1 (800) 550-8411; or from D. Boral Capital LLC by standard mail to D. Boral Capital LLC, 590 Madison Ave 39th Floor, New York, NY 10022, or by email at info@dboralcapital.com, or by telephone at +1 (212) 970-5150. In addition, a copy of the final prospectus relating to the Offering, dated January 21, 2025, 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 has been prepared for informational purposes only and 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 Decent Holding Inc.

Decent Holding Inc. specializes in the provision of wastewater treatment by cleansing the industrial wastewater, ecological river restoration and river ecosystem management by enhancing the water quality, as well as microbial products primarily used for pollutant removal and water quality enhancement, through the Company’s subsidiary, Shandong Dingxin Ecology Environmental Co., Ltd.

For more information, please visit: https://ir.dxshengtai.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:
Investor Relations
WFS Investor Relations Inc.
Connie Kang
Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)

FAQ

How much did Decent Holding (DXST) raise in its IPO?

Decent Holding raised $5 million in gross proceeds through its IPO by selling 1,250,000 ordinary shares at $4.00 per share.

When did DXST stock begin trading on Nasdaq?

DXST stock began trading on the Nasdaq Capital Market on January 22, 2025.

What is the over-allotment option for DXST's IPO?

Underwriters have a 45-day option to purchase up to 187,500 additional shares at the public offering price to cover over-allotments.

How will Decent Holding (DXST) use its IPO proceeds?

The company will use the proceeds for business expansion, R&D, river water quality management services, wastewater treatment technology upgrades, and talent recruitment.

What was the IPO price for Decent Holding (DXST) shares?

The IPO price was set at $4.00 per ordinary share.