FatPipe, Inc. (NASDAQ: FATN) Announces Closing of Initial Public Offering and Listing on NASDAQ

Rhea-AI Summary

FatPipe (NASDAQ: FATN) has successfully completed its Initial Public Offering (IPO), raising $4 million in gross proceeds through the sale of 695,656 shares of common stock at $5.75 per share. The company's shares began trading on the Nasdaq Capital Market on April 8, 2025, under the ticker symbol 'FATN'.

The company, which specializes in enterprise-class SD-WAN solutions, has granted underwriters a 45-day over-allotment option to purchase up to an additional 104,348 shares at the public offering price. D. Boral Capital served as the Sole Book-Running Manager for the offering, which closed on April 9, 2025.

Positive

• Successfully completed IPO and listed on Nasdaq Capital Market
• Raised $4 million in gross proceeds
• Potential for additional capital through over-allotment option

Negative

• Relatively small IPO size of $4 million
• Potential dilution from over-allotment option if exercised

Insights

Financial Analyst

FatPipe's successful IPO marks a significant milestone as the company secures its position on the Nasdaq Capital Market. The offering of 695,656 shares at $5.75 per share generated $4 million in gross proceeds before deducting underwriting discounts and related expenses. While this represents a relatively modest capital raise compared to typical tech IPOs, it provides FatPipe with public market access and working capital to potentially accelerate its growth initiatives.

The company has also granted underwriters a 45-day over-allotment option for an additional 104,348 shares, which could increase total proceeds if exercised. For investors, this successful listing provides a new opportunity to gain exposure to the SD-WAN solutions space, though as with many newly public companies, particularly those with smaller offerings, investors should anticipate potential volatility in early trading periods.

This capital infusion, while not enormous in scale, provides FatPipe with enhanced visibility in the marketplace and potential access to additional capital in the future. The successful completion of the IPO process demonstrates management's ability to navigate complex capital markets transactions, which speaks to their operational competence. The $5.75 pricing and total proceeds suggest a focused offering that found sufficient market interest to complete, though the relatively small size indicates a targeted approach to public markets entry.

SALT LAKE CITY, April 9, 2025 /PRNewswire/ -- FatPipe, Inc. ("FatPipe" or the "Company"), a pioneer in enterprise-class, application-aware, secure software-defined wide area network ("SD-WAN") solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies, is pleased to announce the closing of its underwritten initial public offering of 695,656 shares of common stock at a public offering price of $5.75 per share. The shares of common stock commenced trading on the Nasdaq Capital Market on April 8, 2025, under the ticker symbol "FATN."

The Company received aggregate gross proceeds of $4 million from the offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 45-day over-allotment option to purchase up to an additional 104,348 shares of common stock at the public offering price, less underwriting discounts. The closing for the initial public offering occurred on April 9, 2025.

D. Boral Capital LLC acted as the Sole Book-Running Manager for the offering.

Sichenzia Ross Ference Carmel LLP, New York, NY, acted as counsel to the Company, and Lucosky Brookman LLP, Woodbridge, NJ, acted as counsel to the underwriter in connection with the offering.

A registration statement on Form S-1 (File No. 333-280925) relating to the offering was filed with the U.S. Securities and Exchange Commission ("SEC"), as amended and was declared effective by the SEC on February 12, 2025. A post-effective amendment to the registration statement on Form S-1 relating to the offering was filed with SEC and was declared effective by the SEC on March 17, 2025. The offering of the securities was made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus may be obtained, when available, at the SEC's website at www.sec.gov or from D. Boral Capital LLC, Attention: 590 Madison Avenue 39th Floor, New York, NY 10022, or by email at info@dboralcapital.com, or by telephone at +1(212)-970-5150.

This press release 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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About FatPipe, Inc.

FatPipe, Inc. a pioneer in enterprise-class, application-aware, secure software-defined wide area network ("SD-WAN") solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. FatPipe's network optimization solutions, along with robust cybersecurity and SASE protection, provide organizations with superior network performance and corporate security. FatPipe provides highly recognized intra-corporate wide area network solutions that transcend internet and other network failures to maintain business continuity and high transmission security. FatPipe's network monitoring, reporting, and alerting, reduce the time and effort required by network administrators leading to more efficient network operations.

FatPipe has customers in the United States and around the world, and more than 200 resellers worldwide including almost all national resellers in the US. 

For more information, please visit https://www.fatpipeinc.com.

Legal Disclaimer

Certain statements contained in this press release, including statements relating to the Company's expectations regarding the completion, timing and size of its proposed public offering and listing may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on management's current expectations and are inherently subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. These risks and uncertainties include, but are not limited to, risks and uncertainties associated with the consummation of the offering and other risks described in FatPipe's registration statement on Form S-1, as it may be amended from time to time. Except as required by law, FatPipe expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences

Company Contact Info
IR.Press@fatpipeinc.com

Media Contacts

RedChip Contact Dave Gentry RedChip Companies, Inc. 1.800.RED.CHIP (733-2447)  Dave@redchip.com

MZ Contact Brian M. Prenoveau, CFA MZ Group – MZ North America FATN@mzgroup.us 561-489-5315

View original content to download multimedia:https://www.prnewswire.com/news-releases/fatpipe-inc-nasdaq-fatn-announces-closing-of-initial-public-offering-and-listing-on-nasdaq-302425072.html

SOURCE FatPipe Networks

FAQ

How much did FatPipe (FATN) raise in its IPO in April 2025?

FatPipe raised $4 million in gross proceeds through its IPO by selling 695,656 shares at $5.75 per share.

What is the over-allotment option granted by FatPipe (FATN) in its IPO?

FatPipe granted underwriters a 45-day option to purchase up to 104,348 additional shares at the IPO price.

When did FatPipe (FATN) shares begin trading on the Nasdaq?

FatPipe shares began trading on the Nasdaq Capital Market on April 8, 2025.

What was the IPO price for FatPipe (FATN) shares?

FatPipe's IPO was priced at $5.75 per share.