Gelteq Limited Closes US$5.2 Million Initial Public Offering

Rhea-AI Summary

Gelteq has successfully completed its initial public offering (IPO), raising US$5.2 million through the sale of 1,300,000 ordinary shares at US$4.00 per share. The company's shares began trading on the Nasdaq Global Market under the symbol GELS on October 29, 2024. The Benchmark Company acted as lead managing underwriter, with a 45-day option to purchase up to 195,000 additional shares for over-allotments. Gelteq, a biotechnology company specializing in ingestible gel technology, plans to use the proceeds for manufacturing, marketing, and R&D activities.

Positive

• Successfully raised US$5.2 million through IPO
• Listed on Nasdaq Global Market, providing enhanced visibility and trading access
• Underwriter granted 45-day option for additional 195,000 shares

Negative

• Relatively small IPO size of US$5.2 million may limit growth potential
• Potential dilution if over-allotment option is exercised

Insights

Financial Analyst

This IPO represents a relatively small capital raise of $5.2 million for Gelteq, pricing 1.3 million shares at $4.00 each. The modest size suggests initial institutional interest, though the Nasdaq Global Market listing provides strong visibility and trading infrastructure. The capital allocation strategy focuses on core business development - manufacturing, marketing and R&D - indicating a balanced approach to growth.

The 45-day over-allotment option for 195,000 additional shares (representing 15% of the base offering) provides flexibility to meet excess demand, though the small offering size may limit significant price appreciation potential in the near term. Investors should note that early-stage biotech companies often require multiple funding rounds, suggesting potential future dilution.

NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Gelteq Limited (“Gelteq” or the “Company”), a global biotechnology company that specializes in the formulation, development, and manufacturing of ingestible gel technology, announced today the closing of its initial public offering of 1,300,000 ordinary shares at a public offering price of US$4.00 per share. The ordinary shares commenced trading on the Nasdaq Global Market on October 29, 2024 under the symbol “GELS.”

The gross proceeds from the offering, before deducting underwriting fees and other offering expenses payable by the Company, were US$5.2 million. The Company intends to use the net proceeds from the offering for various purposes, including funding certain manufacturing, marketing and research and development activities.  

The Benchmark Company, LLC acted as the lead managing underwriter for the offering. The Company has granted the underwriter a 45-day option to purchase up to an additional 195,000 ordinary shares solely to cover any over-allotments.

A registration statement on Form F-1 (File No. 333-280804) relating to the offering was declared effective by the U.S. Securities and Exchange Commission (the "SEC") on September 30, 2024. The offering is being made only by means of a prospectus. A final prospectus relating to the offering was filed with the SEC. Electronic copies of the final prospectus may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting The Benchmark Company, LLC, 150 East 58th Street, 17^th Floor, New York, New York 10155, at (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 Gelteq Inc.

Headquartered in Melbourne, Australia, Gelteq is a global biotechnology company that specializes in the formulation, development, and manufacturing of an innovative ingestible gel platform designed for nutrient and drug delivery. The Company is focused on advancing and commercializing its delivery solutions within five core verticals: pharmaceuticals, over-the-counter medications, nutraceuticals, animal medications, and sports nutrition. Gelteq’s unique formulation directly addresses the issues associated with traditional drug delivery methods such as difficulty swallowing, taste of unpalatable ingredients, and dosage control. For more information, visit www.gelteq.com.

Forward Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the anticipated use of the net proceeds. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus for the offering filed with the SEC. Copies of these documents are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:

CORE IR
516-222-2560
PR@gelteq.com

FAQ

How much did Gelteq (GELS) raise in its IPO?

Gelteq raised US$5.2 million in gross proceeds through its IPO by selling 1,300,000 ordinary shares at US$4.00 per share.

When did Gelteq (GELS) start trading on Nasdaq?

Gelteq began trading on the Nasdaq Global Market on October 29, 2024, under the symbol GELS.

What is the over-allotment option for Gelteq's (GELS) IPO?

The underwriter has a 45-day option to purchase up to an additional 195,000 ordinary shares to cover over-allotments.

How will Gelteq (GELS) use its IPO proceeds?

Gelteq plans to use the net proceeds for manufacturing, marketing, and research and development activities.