EPWK HOLDINGS LTD. Announces Closing of Initial Public Offering

Rhea-AI Summary

EPWK Holdings has successfully completed its initial public offering (IPO) on the Nasdaq Global Market, raising $11.275 million in gross proceeds. The company offered 2,750,000 Class A ordinary shares at $4.10 per share, with trading commencing under the ticker symbol 'EPWK' on February 6, 2025.

The company, which specializes in connecting businesses with talent through cloud-sourcing platforms, has granted underwriters a 30-day option to purchase up to 412,500 additional Class A ordinary shares. The IPO proceeds will fund business development, marketing, R&D, new product exploration, an online global design center creation, and general corporate purposes.

Cathay Securities served as the lead underwriter, with Revere Securities as co-underwriter for this firm commitment offering.

Positive

• Successful IPO raising $11.275 million in gross proceeds
• Listed on Nasdaq Global Market, providing increased visibility and trading access
• Clear allocation of funds for growth initiatives including R&D and business development
• Additional funding potential through 30-day underwriter option for 412,500 shares

Negative

• Potential dilution from the 2,750,000 new shares issued
• Additional dilution risk if underwriters exercise their option for 412,500 shares
• IPO price of $4.10 suggests relatively small market capitalization

Insights

IPO & Capital Markets Specialist

EPWK Holdings' IPO marks a strategic entry into the public markets, though the relatively modest raise of $11.275 million suggests a calculated approach to public capital. The pricing at $4.10 per share and listing on Nasdaq Global Market positions the company in the micro-cap segment, which could present both opportunities and challenges for investors.

The allocation of proceeds reveals a balanced strategy:

• Business development and marketing to expand market presence
• R&D investment to enhance platform capabilities
• Creation of an online global design center, indicating international ambitions
• Working capital for operational flexibility

The 30-day option for underwriters to purchase an additional 412,500 shares (15% of the initial offering) could provide additional capital of approximately $1.69 million if fully exercised, potentially strengthening the company's position in the competitive cloud-sourcing market.

The choice of Nasdaq Global Market over other venues suggests a commitment to maintaining higher listing standards and corporate governance, which could appeal to institutional investors. However, the modest size of the offering may initially limit institutional participation and could impact trading liquidity.

The company's focus on connecting businesses with talent through cloud-sourcing platforms aligns with the global trend toward digital transformation and remote work. The planned global design center initiative particularly stands out as a potential differentiator in the competitive talent marketplace sector.

XIAMEN, China, Feb. 7, 2025 /PRNewswire/ -- EPWK HOLDINGS LTD. (the "Company") (NasdaqGM: EPWK), a company that connects businesses with great talents through innovative and efficient cloud-sourcing platforms, today announced the closing of its initial public offering (the "Offering") of 2,750,000 Class A ordinary shares at a public offering price of $4.10 per share. The Class A ordinary shares commenced trading on Nasdaq Global Market under the ticker symbol "EPWK" on February 6, 2025.

The Company received aggregate gross proceeds of $11.275 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters an option, exercisable within 30 days after the closing of the Offering, to purchase up to an additional 412,500 Class A ordinary shares at the public offering price, less underwriting discounts and commissions. The Offering was conducted on a firm commitment basis.

Proceeds from the Offering will be used for business development and marketing, research and development, exploration of new product and service offerings and the creation of an online global design center, and general corporate purposes and working capital.

Cathay Securities, Inc. acted as the representative of the underwriters, with Revere Securities LLC acting as co-underwriter (collectively, the "Underwriters") for the Offering. VCL Law LLP served as counsel to the Company. Winston & Strawn LLP served as counsel to the Underwriters.

The Offering was conducted pursuant to the Company's Registration Statement on Form F-1, as amended (File No. 333-269657) (the "Registration Statement"), previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission ("SEC") on February 3, 2025. The Offering was made only by means of a prospectus, forming a part of the Registration Statement. A final prospectus relating to the Offering was filed with the SEC and is available on the SEC's website at www.sec.gov. Alternatively, electronic copies of the prospectus relating to the Offering may be obtained from Cathay Securities, Inc. at 40 Wall Street, Suite 3600, New York, NY 10005, or by telephone at +1 (855) 939-3888.

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 these securities, 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 EPWK HOLDINGS LTD.

The Company connects businesses with outstanding talent through an innovative and efficient integrated crowdsourcing platform, providing creative transaction services for small and medium-sized enterprises and suppliers. The Company was founded by Huang Guohua, former chief reporter of Fujian Daily Press Group, and conducts its operations through its subsidiaries and contractual arrangements with the variable interest entity in China. For more information, please visit the Company's website: www.epwk.com

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes 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 identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update 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 in its other filings with the SEC.

For more information, please contact:

Investor Relations
EPWK HOLDINGS LTD.
Phone: +86 0592-5978725
Email: chenyanjun@epwk.com

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SOURCE EPWK HOLDINGS LTD.

FAQ

How much did EPWK Holdings raise in its February 2025 IPO?

EPWK Holdings raised $11.275 million in gross proceeds through its initial public offering, selling 2,750,000 Class A ordinary shares at $4.10 per share.

What is the IPO price for EPWK Holdings shares?

EPWK Holdings' IPO was priced at $4.10 per Class A ordinary share.

How will EPWK Holdings use its IPO proceeds?

EPWK Holdings will use the IPO proceeds for business development, marketing, R&D, exploring new product offerings, creating an online global design center, and general corporate purposes.

When did EPWK Holdings start trading on Nasdaq?

EPWK Holdings began trading on the Nasdaq Global Market under the ticker symbol 'EPWK' on February 6, 2025.

What is the size of EPWK's underwriter option and when does it expire?

EPWK granted underwriters a 30-day option to purchase up to 412,500 additional Class A ordinary shares at the public offering price, less underwriting discounts and commissions.