Fly-E Group Announces Pricing of Initial Public Offering

Rhea-AI Summary

Fly-E Group has announced the pricing of its initial public offering (IPO) at $4.00 per share, making 2.25 million shares available. The company has also granted underwriters a 30-day option to purchase an additional 337,500 shares.

Shares will trade on Nasdaq under the symbol 'FLYE' starting June 6, 2024, with the offering expected to close on June 7, 2024. Gross proceeds are estimated at $9.0 million, potentially rising to $10.35 million if the overallotment option is fully exercised.

Funds will be used for inventory, production costs, retail expansion, R&D, technology, and general corporate purposes. The sole book-running manager for the offering is The Benchmark Company. The registration statement was approved by the SEC and became effective on May 14, 2024.

Positive

• IPO priced at $4.00 per share, making it accessible for a broad range of investors.
• Potential to raise $9.0 million in gross proceeds, increasing to $10.35 million if overallotment is exercised.
• Funds are allocated for key growth areas: inventory, production, retail expansion, R&D, and technology.
• Trading on Nasdaq starting June 6, 2024, can enhance visibility and liquidity.
• The Benchmark Company is the sole book-running manager, indicating strong institutional support.

Negative

• Potential for shareholder dilution if the underwriters exercise their option to purchase additional shares.
• Gross proceeds do not account for underwriting discounts, commissions, and expenses, reducing net capital.
• The success of the IPO is subject to customary closing conditions, posing a potential risk.

Insights

Financial Analyst

Fly-E Group's initial public offering (IPO) signifies a critical juncture in its business lifecycle. The pricing at $4.00 per share and the potential to raise up to $10.35 million, if the overallotment option is exercised, signals investor confidence. This capital influx can significantly bolster the company’s capacity to scale operations, particularly in inventory and production. Retail investors should note the emphasis on using proceeds for expanding retail stores and R&D, which can potentially drive long-term growth. However, the relatively modest offering size compared to industry giants may indicate cautious market entry or existing market limitations. Analyzing the company's financial health and competitive position will be key to assessing the sustainability of this growth.

Market Research Analyst

The approval for listing on the Nasdaq Capital Market not only lends credibility to Fly-E Group but also provides greater visibility among investors. It is important for retail investors to understand that the success of an IPO often hinges on market sentiment and broader economic conditions. The intended use of proceeds—focusing on inventory, production and R&D—could position Fly-E Group favorably in the competitive landscape of vehicle production if executed efficiently. However, investors should be cautious of the risks associated with relatively new market entries and should monitor post-IPO performance closely. The choice of The Benchmark Company, LLC as the sole book-running manager reflects a strategic move; their reputation and network might enhance the offering's reach.

New York, N.Y., June 05, 2024 (GLOBE NEWSWIRE) -- Fly-E Group, Inc. (Nasdaq: FLYE) (“FLYE”) today announced the pricing of its initial public offering of 2,250,000 shares of its common stock, par value $0.01 per share, at an initial public offering price to the public of $4.00 per share. FLYE has granted the underwriters a 30-day overallotment option to purchase up to an additional 337,500 shares of common stock from FLYE at the initial public offering price, less underwriting discounts and commissions.

FLYE’s shares of common stock have been approved for listing and are expected to begin trading on the Nasdaq Capital Market under the symbol “FLYE” on June 6, 2024.

The offering is expected to close on June 7, 2024, subject to customary closing conditions.

The gross proceeds to FLYE from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, will be $9.0 million (or $10.35 million if the underwriters’ option to purchase additional shares of common stock from us is exercised in full). FLYE intends to use the net proceeds from this offering to cover the purchase of inventory and production costs of its vehicles, the expansion of its retail stores, its technology, research and development initiatives, and for general corporate purposes.

The Benchmark Company, LLC is the sole book-running manager for the offering.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission and became effective on May 14, 2024. The proposed offering will be made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from The Benchmark Company, LLC, 150 East 58th Street, 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at prospectus@benchmarkcompany.com.

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 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 Fly-E Group, Inc.

Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing and selling smart electric motorcycles, electric bikes, electric scooters and related accessories under the brand “Fly E-Bike.” Our commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company’s website: https://investors.flyebike.com.

Cautionary Note Regarding Forward Looking Statements

This news release and statements of FLYE’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expected”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements (which includes statements regarding the commencement of trading in our common stock and the closing of the offering described herein) are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. In evaluating these forward-looking statements, you should consider various factors, including our ability to obtain additional funding to market our vehicles and develop new products; our ability to produce vehicles with sufficient volume and quality to satisfy customers; the ability of our principal vendors to deliver the necessary components for our vehicles at prices and volumes acceptable to us; our principal vendors’ ability to perform quality control on our products; our ability to obtain sufficient intellectual property protection for our brand and technologies; our vehicles’ ability to perform as expected; our facing product warranty claims or product recalls; our facing adverse determinations in significant product liability claims; customers’ acceptance of electric vehicles; the development of alternative technology that adversely affects our business; the lingering impact of COVID-19 on our business; increased government regulation of our industry; and tariffs and currency exchange rates. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

For further information, please contact:

Fly-E Group, Inc.
Investor Relations Department
Email: ir@flyebike.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

When is Fly-E Group's IPO scheduled to start trading?

Fly-E Group's shares are expected to begin trading on Nasdaq under the symbol 'FLYE' on June 6, 2024.

What is the initial public offering price for Fly-E Group's shares?

The initial public offering price for Fly-E Group's shares is $4.00 per share.

How many shares is Fly-E Group offering in its IPO?

Fly-E Group is offering 2,250,000 shares in its initial public offering.

What are the gross proceeds expected from Fly-E Group's IPO?

The gross proceeds are expected to be $9.0 million, potentially increasing to $10.35 million if the overallotment option is fully exercised.

What will Fly-E Group use the IPO proceeds for?

Fly-E Group plans to use the proceeds for inventory, production costs, retail expansion, R&D, technology, and general corporate purposes.

Who is the sole book-running manager for Fly-E Group's IPO?

The Benchmark Company is the sole book-running manager for Fly-E Group's IPO.