HUHUTECH International Group Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

HUHUTECH International Group, a provider of factory facility management and monitoring systems, has announced the pricing of its initial public offering (IPO) of 1,050,000 ordinary shares at US$4.0 per share. The company expects to raise US$4.2 million in gross proceeds. Shares are set to begin trading on the Nasdaq Capital Market under the ticker symbol 'HUHU' on October 22, 2024.

The IPO is expected to close around October 23, 2024. Underwriters have a 45-day option to purchase up to 157,500 additional shares. Proceeds will fund the construction of an R&D plant, business expansion in China, working capital, and other corporate purposes. Craft Capital Management is the lead underwriter, with EF Hutton as co-underwriter.

Positive

• Initial public offering (IPO) priced at US$4.0 per share
• Expected to raise US$4.2 million in gross proceeds
• Listing on Nasdaq Capital Market under ticker 'HUHU'
• Underwriters granted 45-day option for additional 157,500 shares
• Proceeds to fund R&D plant construction and business expansion

Negative

• Potential shareholder dilution from the issuance of new shares
• Relatively small offering size may limit liquidity

Insights

Financial Analyst

HUHUTECH's IPO pricing at $4.0 per share for 1,050,000 ordinary shares is a significant milestone for the company. The total gross proceeds of $4.2 million are modest but could provide essential capital for their expansion plans. The listing on Nasdaq Capital Market under the ticker "HUHU" may increase visibility and liquidity for investors.

The planned use of proceeds focuses on R&D expansion and business development in China, which could drive future growth. However, the relatively small offering size may limit the scope of these initiatives. The firm commitment underwriting by Craft Capital Management and EF Hutton adds credibility to the offering.

Investors should note that as a newly public company from China, HUHUTECH may face regulatory scrutiny and potential volatility. The 45% overallotment option could provide additional capital if exercised. Overall, while the IPO marks an important step for HUHUTECH, its small size and focus on the Chinese market suggest cautious optimism is warranted.

Market Research Analyst

HUHUTECH's entry into the public market reflects growing interest in factory facility management and monitoring systems. The company's focus on gas supply systems in industrial settings positions it in a niche but potentially expanding sector as manufacturing automation increases globally.

The planned 5,000 square meter R&D plant expansion signals HUHUTECH's commitment to innovation, which could be important in maintaining a competitive edge. However, the company's concentration in the PRC market may limit its global reach in the short term.

Investors should consider the broader trends in industrial automation and China's manufacturing sector when evaluating HUHUTECH's long-term prospects. The IPO's timing amid global economic uncertainties and U.S.-China tensions may present both opportunities and challenges for the company's growth strategy and market reception.

Wuxi, China, Oct. 21, 2024 (GLOBE NEWSWIRE) -- HUHUTECH International Group Inc. (the “Company” or “HUHUTECH”), a professional provider of factory facility management and monitoring systems, today announced the pricing of its initial public offering (the “Offering”) of 1,050,000 ordinary shares (“Ordinary Shares”) at a public offering price of US$4.0 per Ordinary Share. The Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on October 22, 2024 under the ticker symbol “HUHU.”

The Company expects to receive aggregate gross proceeds of US$4.2 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 157,500 Ordinary Shares at the public offering price, less underwriting discounts. The Offering is expected to close on or about October 23, 2024, subject to the satisfaction of customary closing conditions.

Proceeds from the Offering will be used for: (i) the construction of a 5,000 square meter R&D plant, the expansion of the R&D team, the construction of addition facilities, and purchase of equipment for the production of equipment for gas supply system in the Company’s Wuxi plant; (ii) the expansion and development of the Company’s business located in the PRC; (iii) working capital, team building, operating expenses and other general corporate purposes, and (iv) paying taxes, provident fund, and social security.

The Offering is being conducted on a firm commitment basis. Craft Capital Management LLC is acting as the representative of the underwriters, with EF Hutton LLC acting as the co-underwriter (collectively, the “Underwriters”) for the Offering. Ortoli Rosenstadt LLP is acting as U.S. counsel to the Company and Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the Underwriters in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-270958), as amended, and was declared effective by the SEC on September 30, 2024. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering, when available, may be obtained from Craft Capital Management LLC by email at info@craftcm.com, by standard mail to 377 Oak St, Lower Concourse, Garden City, NY 11530, or by telephone at +1 (800) 550-8411; or from EF Hutton LLC by email at syndicate@efhutton.com, by standard mail to 590 Madison Ave 39th floor, New York, NY 10022, or by telephone at +1 (212) 404-7002​. In addition, copies of the final prospectus relating to the Offering, when available, may 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 does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company’s securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company’s 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 such state or jurisdiction.

About HUHUTECH International Group Inc.

HUHUTECH International Group Inc. is a professional provider of factory facility management and monitoring systems. Through its subsidiaries in China and Japan, HUHUTECH designs and provides customized high-purity gas and chemical production system and equipment. The Company’s products mainly include high-purity process systems (HPS) and factory management control systems (FMCS), which effectively increase operation efficiency by using standardized module software. The modularity of HUHUTECH’s software solution reduces the errors caused by frequent updates of the program. As a nationally recognized brand, HUHUTECH serve major players in the pan-semiconductor industry. Its products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers. For more information, please visit the Company’s website: ir.huhutech.com.cn.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

HUHUTECH International Group Inc.
Investor Relations Department
Email: ir@huhutech.com.cn

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

FAQ

What is the IPO price for HUHUTECH International Group (HUHU) shares?

HUHUTECH International Group (HUHU) has priced its initial public offering at US$4.0 per ordinary share.

How much does HUHUTECH International Group (HUHU) expect to raise from its IPO?

HUHUTECH International Group (HUHU) expects to receive aggregate gross proceeds of US$4.2 million from its initial public offering.

When will HUHUTECH International Group (HUHU) shares start trading on Nasdaq?

HUHUTECH International Group (HUHU) shares are expected to commence trading on the Nasdaq Capital Market on October 22, 2024.

What will HUHUTECH International Group (HUHU) use the IPO proceeds for?

HUHUTECH International Group (HUHU) will use the IPO proceeds for R&D plant construction, business expansion in China, working capital, and other general corporate purposes.