Decent Holding Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Decent Holding Inc., a Chinese wastewater treatment services provider, has announced the pricing of its initial public offering (IPO) of 1,250,000 ordinary shares at $4.00 per share, expecting to raise $5 million in gross proceeds. The company's shares will trade on the Nasdaq Capital Market under the symbol DXST starting January 22, 2025.

The IPO includes an over-allotment option for underwriters to purchase up to additional 187,500 shares within 45 days. 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 are serving as underwriters for this firm commitment offering.

Positive

• IPO raising $5 million in gross proceeds
• Nasdaq Capital Market listing approval secured
• 45-day over-allotment option for additional 187,500 shares
• Clear allocation of funds for business expansion and R&D

Negative

• Relatively small IPO size might limit growth potential
• Potential dilution from over-allotment option exercise

Insights

Financial Markets Analyst

Decent Holding Inc.'s IPO represents an interesting entry into the U.S. capital markets, with several notable aspects that warrant attention. The $4.00 per share pricing and relatively modest $5 million raise suggests a conservative valuation approach, which could be strategic in the current market environment where investors are particularly selective with new offerings.

The company's focus on wastewater treatment in China positions it in a sector with significant growth potential, driven by China's increasing environmental regulations and massive infrastructure needs. The planned allocation of proceeds reflects a balanced approach between immediate business expansion and long-term technological development.

Several structural elements of this IPO merit attention:

• The inclusion of a 45-day over-allotment option for an additional 187,500 shares provides flexibility to meet excess demand
• The choice of smaller boutique underwriters (Craft Capital and D. Boral Capital) rather than major investment banks suggests a more focused distribution strategy
• The firm commitment basis indicates underwriter confidence in placing the shares

For investors, this IPO presents both opportunities and considerations. The environmental services sector in China offers substantial growth potential due to increasing regulatory requirements and urbanization. However, the relatively small offering size may impact initial trading liquidity and investors should monitor the post-IPO trading pattern carefully. The company's ability to execute its growth strategy and navigate China's regulatory environment will be important factors in its performance as a public company.

Yantai, China, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Decent Holding Inc. (the “Company”), an established wastewater treatment services provider in China, today announced the pricing 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. The Company expects to receive aggregate gross proceeds of $5 million, before deducting underwriting discounts and other offering expenses. The Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on January 22, 2025, under the ticker symbol “DXST”. The Offering is expected to close on January 23, 2025, subject to the satisfaction of customary closing conditions. In addition, the Company has granted the underwriters an option (the "Over-Allotment Option"), 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 the Over-Allotment Option, if any.

The net proceeds from the Offering will be used 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 is being conducted on a firm commitment basis. Craft Capital Management LLC and D. Boral Capital LLC are acting as underwriters (the “Underwriters”) for the Offering. Ortoli Rosenstadt LLP is acting as U.S. securities counsel to the Company, and The Crone Law Group, P.C. is acting 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, has been 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, when available, 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 prospectus relating to the Offering, when available, 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

What is the IPO price and size for Decent Holding (DXST)?

Decent Holding's IPO is priced at $4.00 per share for 1,250,000 ordinary shares, raising $5 million in gross proceeds.

When will DXST start trading on Nasdaq?

DXST shares will commence trading on the Nasdaq Capital Market on January 22, 2025.

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

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

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 IPO price to cover over-allotments.

Who are the underwriters for Decent Holding's (DXST) IPO?

Craft Capital Management and D. Boral Capital are acting as underwriters for the IPO.