Galaxy Payroll Group Limited Announces Pricing of Its Initial Public Offering

Rhea-AI Summary

Galaxy Payroll Group (GLXG) has announced the pricing of its initial public offering (IPO) of 1,750,000 ordinary shares at $4.00 per share, aiming to raise $7,000,000 in gross proceeds. The shares are set to begin 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 an additional 262,500 shares to cover over-allotments.

The Hong Kong-based company plans to use the proceeds for brand promotion (20%), recruitment (20%), office expansion (20%), IT system enhancement (20%), and general working capital (20%). The offering is expected to close on September 13, 2024, subject to customary conditions.

Positive

• Initial public offering (IPO) priced at $4.00 per share, raising $7,000,000 in gross proceeds
• Listing on Nasdaq Capital Market, potentially increasing visibility and liquidity
• Underwriter granted 45-day option for additional 262,500 shares, possibly increasing total proceeds
• Proceeds allocated evenly across key growth areas: marketing, recruitment, expansion, IT enhancement, and working capital

Negative

• Potential dilution of existing shareholders' ownership due to new share issuance
• Market risks associated with newly listed companies and potential stock price volatility
• Uncertainty regarding the company's ability to effectively utilize the raised capital for growth

Insights

Financial Analyst

Galaxy Payroll Group 's IPO marks a significant milestone, raising $7 million at $4.00 per share. The firm commitment basis and NASDAQ listing under 'GLXG' signal market confidence. The balanced allocation of proceeds across brand promotion, talent acquisition, expansion, IT enhancement and working capital (20% each) suggests a well-rounded growth strategy. However, the relatively small offering size may limit immediate impact. The over-allotment option could potentially boost proceeds by 15%. Investors should note that as a newly public company, GLXG may face volatility and scrutiny in its early trading days.

Market Research Analyst

GLXG's IPO reflects growing interest in specialized business services. The company's focus on payroll outsourcing, employment services and market research positions it well in Hong Kong's dynamic business landscape. The equal distribution of funds across key growth areas demonstrates a strategic approach to scaling operations. However, the competitive nature of these services and potential economic headwinds in Hong Kong could pose challenges. Investors should monitor how effectively GLXG leverages its new capital to expand market share and enhance its service offerings in a rapidly evolving business environment.

Tech Expert

The 20% allocation for IT systems enhancement is important in the payroll and HR tech space. This investment could significantly improve GLXG's service efficiency and data security - critical factors for client retention and acquisition. However, the amount ($1.4 million) may be modest for comprehensive tech upgrades. Investors should watch for how GLXG balances in-house development with potential partnerships or acquisitions to stay competitive. The company's ability to innovate and adapt to emerging technologies like AI and blockchain in HR processes will be key to its long-term success in this tech-driven sector.

Hong Kong, Sept. 12, 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 pricing of its initial public offering (the "Offering") of 1,750,000 ordinary shares (the "Ordinary Shares") at a 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 Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to begin trading 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 is expected to close on September 13, 2024, subject to the satisfaction of customary closing conditions.

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

What is the IPO price for Galaxy Payroll Group (GLXG) shares?

Galaxy Payroll Group (GLXG) has priced its initial public offering at $4.00 per ordinary share.

When will GLXG start trading on the Nasdaq Capital Market?

GLXG shares are expected to begin trading on the Nasdaq Capital Market on September 12, 2024.

How much does Galaxy Payroll Group (GLXG) aim to raise in its IPO?

GLXG aims to raise $7,000,000 in gross proceeds from its initial public offering of 1,750,000 ordinary shares.

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

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

Who is the underwriter for Galaxy Payroll Group 's (GLXG) IPO?

R.F. Lafferty & Co., Inc. is acting as the sole underwriter for Galaxy Payroll Group 's (GLXG) initial public offering.