Galaxy Payroll Group Limited Announces Closing of $7 Million Initial Public Offering

Rhea-AI Summary

Galaxy Payroll Group (GLXG), a Hong Kong-based payroll outsourcing and employment services provider, has successfully closed its initial public offering on September 13, 2024. The company raised $7 million by offering 1,750,000 ordinary shares at $4.00 per share. GLXG began trading on the Nasdaq Capital Market on September 12, 2024, under the ticker symbol 'GLXG'.

The underwriter, R.F. Lafferty & Co., Inc., has a 45-day option to purchase up to 262,500 additional shares. GLXG plans to use the proceeds for brand promotion, recruitment, office expansion, IT system enhancement, and working capital, allocating 20% to each category.

Positive

• Successfully raised $7 million through IPO
• Listed on Nasdaq Capital Market, potentially increasing visibility and liquidity
• Diversified allocation of funds for growth initiatives
• Underwriter has option to purchase additional shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders' ownership due to new share issuance
• Market volatility risk for newly listed stock

Insights

Financial Analyst

Galaxy Payroll Group's $7 million IPO marks a significant milestone for the Hong Kong-based company. With shares priced at $4.00 each, the offering demonstrates investor confidence in GLXG's business model. The equal allocation of proceeds across brand promotion, recruitment, expansion, IT enhancement and working capital suggests a balanced growth strategy. However, investors should note the relatively small size of the IPO, which may limit the company's ability to compete with larger, established players in the payroll and employment services sector. The option for the underwriter to purchase additional shares could provide some flexibility in case of strong demand. Overall, while the successful listing on Nasdaq is positive, the company's ability to execute its growth plans and compete effectively will be important for long-term success.

Market Research Analyst

GLXG's IPO reflects growing interest in the payroll outsourcing and employment services sector, particularly in the Asian market. The company's focus on Hong Kong positions it well to capitalize on the region's dynamic business environment. The planned expansion of offices and service scope could be a key driver for future growth. However, the competitive landscape in this industry is intense, with both local and global players vying for market share. GLXG's success will depend on its ability to differentiate its services and adapt to changing market demands. The investment in IT systems is crucial, as technology plays an increasingly important role in payroll and HR services. Investors should monitor GLXG's ability to attract and retain clients, as well as its technological advancements, to gauge its long-term potential in this evolving market.

Legal Expert

The successful completion of Galaxy Payroll Group's IPO, in compliance with SEC regulations, demonstrates the company's commitment to transparency and regulatory adherence. The firm commitment basis of the offering provides some assurance to investors. The inclusion of a 45-day over-allotment option for the underwriter is a standard practice that can help stabilize the stock price post-IPO. Investors should be aware that as a newly public company, GLXG will face increased scrutiny and reporting requirements. The company's ability to maintain compliance with Nasdaq listing standards and SEC regulations will be crucial. Additionally, as a foreign issuer, GLXG may face unique regulatory challenges in both the U.S. and Hong Kong markets. Potential investors should carefully review the prospectus and ongoing filings to understand the full scope of risks and opportunities associated with this investment.

Hong Kong, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Galaxy Payroll Group Limited (the “Company” or “GLXG”), a reputable payroll outsourcing service, employment service and consultancy and market research service provider based in Hong Kong, today announced the closing of its initial public offering (the "Offering") of 1,750,000 ordinary shares (the "Ordinary Shares") at an initial public offering price of $4.00 per share for total gross proceeds of $7,000,000, before deducting underwriting discounts and other offering expenses. The Offering closed on September 13, 2024, and the Ordinary Shares began trading on Nasdaq Capital Market on September 12, 2024, under the ticker symbol "GLXG". The Company has granted the underwriter an option, exercisable within 45 days from the effective date of certain Registration Statement (as defined below), to purchase up to an additional 262,500 Ordinary Shares at the initial public offering price, less underwriting discounts, to cover over-allotments, if any.

The Offering was conducted on a firm commitment basis. R.F. Lafferty & Co., Inc., acted as the sole underwriter (the “Underwriter”) for the Offering. Pryor Cashman LLP acted as U.S. counsel to the Company, and VCL Law LLP acted as U.S. counsel to the Underwriter in connection with the Offering.

The Company intends to use the proceeds from this Offering for 1) brand promotion and marketing (20%); 2) recruitment of talented personnel (20%); 3) expansion of new offices and servicing scope (20%); 4) enhancement of IT systems (20%) and 5) general working capital (20%).

A registration statement on Form F-1 (File No. 333-269043) relating to the Offering, as amended (the “Registration Statement”), has been filed with the U.S. Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on September 10, 2024. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, when available, from R. F. Lafferty & Co., Inc by email at offerings@rflafferty.com or via standard mail to R. F. Lafferty & Co., Inc, 40 Wall Street, 27th Floor, New York, NY10005. In addition, a copy of the final prospectus 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 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 Payroll Group Limited

Galaxy Payroll Group Limited is a Hong Kong-headquartered company with decades of experience and understanding in the payroll outsourcing service, employment service industry and human capital market in Asian countries. Through its operating entities and in-country partners, the Company provides payroll outsourcing service, employment service and consultancy and market research service to customers from China mainland, Hong Kong, Taiwan, Macau, Japan, Australia and other Asian countries, which are mainly categorized as (i) channels which are global human resources service providers engaged by companies/organizations to handle payroll and/or employment-related matters for their branch offices in different regions; (ii) end-users which are mainly multinational companies/organizations that outsource their payroll and/or employment functions to the Company directly; and (iii) end-users consulting the Company for their future expansion worldwide. For more information please visit: http://investors.galaxy-hk.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 actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These forward-looking 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:

Underwriter
R. F. Lafferty & Co., Inc.
40 Wall Street, 27th Floor
New York, NY 10005
(212) 293-9090
offerings@rflafferty.com

Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

FAQ

How much did Galaxy Payroll Group (GLXG) raise in its IPO?

Galaxy Payroll Group (GLXG) raised $7 million in gross proceeds from its initial public offering.

What is the ticker symbol for Galaxy Payroll Group on Nasdaq?

Galaxy Payroll Group trades on the Nasdaq Capital Market under the ticker symbol 'GLXG'.

When did GLXG's shares begin trading on Nasdaq?

GLXG's shares began trading on the Nasdaq Capital Market on September 12, 2024.

How does Galaxy Payroll Group plan to use the IPO proceeds?

GLXG plans to use the proceeds equally (20% each) for brand promotion, recruitment, office expansion, IT system enhancement, and general working capital.

Who was the underwriter for Galaxy Payroll Group 's IPO?

R.F. Lafferty & Co., Inc. acted as the sole underwriter for Galaxy Payroll Group 's IPO.