Huachen AI Parking Management Technology Holding Co., Ltd Announces Closing of Initial Public Offering

Rhea-AI Summary

Huachen AI Parking Management Technology (NASDAQ: HCAI) has successfully completed its Initial Public Offering (IPO) on February 6, 2025. The company sold 1,500,000 ordinary shares at $4.00 per share, raising $6.0 million in gross proceeds before deducting underwriting costs and expenses.

Trading of the shares began on the Nasdaq Capital Market on February 5, 2025, under the ticker 'HCAI'. The underwriters have a 45-day option to purchase up to 225,000 additional shares to cover over-allotments. The company plans to use the net proceeds for contracting new parking lot rights, developing AGVs and RGVs, recruiting technical personnel, and working capital.

Benjamin Securities and D. Boral Capital served as underwriters for the offering, which was conducted on a firm commitment basis.

Positive

• Successful IPO raising $6.0 million in gross proceeds
• Listing on Nasdaq Capital Market provides increased visibility and access to capital markets
• Clear allocation of funds for business expansion and technology development

Negative

• Relatively small IPO size of $6.0 million may limit growth potential
• Potential dilution risk from additional 225,000 shares if over-allotment option is exercised

Insights

Financial Markets Analyst

This IPO marks Huachen AI's entry into the U.S. public markets, though the $6 million raise is notably modest for a Nasdaq listing. The small size suggests a conservative approach but could limit the company's ability to scale rapidly in China's competitive smart parking market.

The fund allocation strategy reveals a focused approach:

• Expansion through parking lot management rights acquisition
• Technology development in autonomous vehicle systems (AGVs/RGVs)
• Technical talent acquisition

This three-pronged strategy indicates a balanced focus on both infrastructure and innovation, critical in the rapidly evolving smart parking sector.

The inclusion of an over-allotment option for 225,000 additional shares provides flexibility to raise up to $900,000 more if market conditions are favorable. However, the timing of this IPO amid current market volatility and U.S.-China tensions suggests potential challenges in maintaining investor interest.

The company's focus on AI-driven parking solutions aligns with China's urban development goals and the growing demand for smart city infrastructure. However, the IPO proceeds may constrain their ability to compete effectively against larger, well-funded competitors in this capital-intensive sector.

JIAXING, CHINA, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Huachen AI Parking Management Technology Holding Co., Ltd (the "Company") (NASDAQ: HCAI), a comprehensive smart parking solutions and equipment structural parts provider with all operations through the operating subsidiaries in China, today announced the closing of its initial public offering (the "Offering") of 1,500,000 ordinary shares, par value $0.00000125 (the "Ordinary Shares") at a public offering price of $4.00 per share for total gross proceeds of $6.0 million before deducting underwriting discounts and offering expenses. The Ordinary Shares began trading on the Nasdaq Capital Market on February 5, 2025 under the ticker symbol “HCAI.”

The Offering was conducted on a firm commitment basis. In addition, the Company has granted the underwriters an option, exercisable within 45 days from the closing date of the  Offering, to purchase up to an additional 225,000 Ordinary Shares at the public offering price, less underwriting discounts and commissions, to cover over-allotment, if any.

Net proceeds from the Offering will be used by the Company for contracting the managerial and operational rights of a new parking lot, development and upgrading of new AGVs and RGVs, recruitment for specialized technical and operational personnel, as well as working capital and general corporate matters.

Benjamin Securities, Inc. and D. Boral Capital LLC acted as underwriters for the Offering (the “Underwriters”). Ortoli Rosenstadt LLP acted as U.S. securities counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as counsel to the Underwriters.

The Offering was conducted pursuant to the Company’s registration statement on Form F-1 (File No. 333-281543), as amended, in connection with the Offering (the “Registration Statement”) previously filed with the Securities and Exchange Commission ("SEC") and subsequently declared effective by the SEC on February 4, 2025. The Offering is being made only by means of a prospectus. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, copies of the prospectus relating to the Offering may be obtained, when available, from Benjamin Securities, Inc. by email at info@benjaminsecurities.com, by standard mail to 3 West Garden Street, Suite 407, Pensacola, FL 32502, or by telephone at +1 (516) 931-1090; or from D. Boral Capital LLC by standard mail to D. Boral Capital LLC, 590 Madison Ave 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 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 Huachen AI Parking Management Technology Holding Co., Ltd

Huachen AI Parking Management Technology Holding Co., Ltd is a Cayman Islands holding company with no operation on its own. The Company consolidates the financial results of its subsidiaries. We are a comprehensive smart parking solutions and equipment structural parts provider and conduct all our operations through our Operating Subsidiaries in China. The Operating Subsidiaries provide customized parking solutions to optimize efficiency in limited parking spaces, covering smart cubic parking garage design, cubic parking equipment manufacturing, sales, installation, and maintenance. To cater the customers’different parking needs, we manufacture and offer various cubic parking garage products by employing various working principles, such as lifting and shifting, convenient lifting, vertical circulation, vertical lifting, plane moving, alley stacking, multi-layer cycle, horizontal cycle, and car lift. Moreover, the Operating Subsidiaries offer design, repair, and maintenance services to ensure the continued functionality of our parking solutions.

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," “continue” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions 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:

Company Info:

Huachen AI Parking Management Technology Holding Co., Ltd

Alan Li
Email: ir@huachenai.com

Mobile: +852-95791074

FAQ

How much did Huachen AI (HCAI) raise in its February 2025 IPO?

Huachen AI raised $6.0 million in gross proceeds by selling 1,500,000 ordinary shares at $4.00 per share in its February 2025 IPO.

When did HCAI stock begin trading on Nasdaq?

HCAI stock began trading on the Nasdaq Capital Market on February 5, 2025.

What is the over-allotment option for HCAI's IPO?

The underwriters have a 45-day option to purchase up to 225,000 additional shares at the IPO price to cover over-allotments.

How will Huachen AI use its IPO proceeds?

The proceeds will be used for contracting new parking lot rights, developing AGVs and RGVs, recruiting technical personnel, and working capital purposes.

Who were the underwriters for HCAI's IPO?

Benjamin Securities, Inc. and D. Boral Capital acted as underwriters for the IPO.