Hywin Holdings Ltd. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Hywin Holdings Ltd. (NASDAQ: HYW) has priced its initial public offering (IPO) at $10.00 per American Depositary Share (ADS), totaling 3,000,000 ADSs. The expected gross proceeds of approximately $30 million are set to enable growth in its wealth management and asset management services, where it holds a 7.5% market share in China. Trading on NASDAQ is anticipated to commence on March 26, 2021, with the offering closing on March 30, 2021. An option to underwriters for an additional 450,000 ADSs is also available.

Positive

• The IPO pricing of $10.00 per ADS could enhance the company's capital for business expansion.
• Expected gross proceeds of approximately $30 million could be allocated for growth in wealth management services.

Negative

• The offering could lead to shareholder dilution if the underwriters exercise their option for additional shares.

SHANGHAI, China, March 26, 2021 (GLOBE NEWSWIRE) -- Hywin Holdings Ltd. (“Hywin” or the “Company”) (NASDAQ: HYW), the third largest third-party wealth management service provider in China, today announced the pricing of its initial public offering of 3,000,000 American Depositary Shares (“ADSs”), at US$10.00 per ADS. Each ADS represents two Class A ordinary shares of the Company. The ADSs are expected to begin trading on the NASDAQ Global Market on March 26, 2021 under the ticker symbol “HYW.” The offering is expected to close on March 30, 2021, subject to customary closing conditions.

The Company has granted the underwriters an option, exercisable within 45 days from the date of the final prospectus, to purchase up to an aggregate of 450,000 additional ADSs. The gross proceeds from the offering to the Company, before deducting underwriting discounts and commissions and other offering expenses payable by the Company, are expected to be approximately $30 million, excluding any exercise of the underwriters' option to purchase additional shares.

Network 1 Financial Securities Inc., Alexander Capital L.P. and Valuable Capital Limited are acting as bookrunners of the offering.

A registration statement related to these securities was filed with the United States Securities and Exchange Commission and became effective on March 25, 2021. This offering is being made only by means of a prospectus forming part of the effective registration statement. A copy of the final prospectus relating to the offering may be obtained, when available, by contacting Network 1 Financial Securities Inc. at 2 Bridge Avenue, Suite 241, Red Bank, NJ 07701, by email: jsun@netw1.com, or by telephone: +1 (800)-886-7007.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Hywin Holdings Ltd.

Hywin (NASDAQ: HYW) is the third largest third-party wealth management service provider in China, with a 7.5% market share in terms of 2019 transaction value, according to CIC. Our primary services are wealth management, insurance brokerage, and asset management. Wealth management is currently our largest business segment, in which our onshore and offshore solution platform serves clients across generations. This unit markets and distributes investment products and funds that raise capital both privately and through public offerings. For more information, please visit https://ir.hywinwealth.com/

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “plan,” “project,” “potential,” “continue,” “ongoing,” “expect,” “aim,” “believe,” “intend,” “may,” “should,” “will,” “is/are likely to,” “could” and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For Investor and Media Inquiries Please Contact:

Investor Contact:

Hywin Holdings Ltd.
Ms. Jiawei Shen
Phone: +86 21-8013-3992
Email: ir@chyjr.com

The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: Julia@blueshirtgroup.com

Media contact:

ICR, Inc.
Mr. Ker Zheng
Phone: +86 139-2280-3249
Email: HywinPR@icrinc.com

FAQ

What is the IPO price for Hywin Holdings Ltd. (HYW)?

Hywin Holdings Ltd. priced its initial public offering at $10.00 per ADS.

How many American Depositary Shares (ADSs) are being offered by Hywin (HYW)?

Hywin is offering 3,000,000 ADSs in its initial public offering.

When will Hywin Holdings (HYW) begin trading on NASDAQ?

Hywin Holdings is expected to begin trading on NASDAQ on March 26, 2021.

What are the expected gross proceeds from Hywin's IPO?

The expected gross proceeds from Hywin's IPO are approximately $30 million.

Is there an option for additional shares in Hywin's IPO?

Yes, the underwriters have an option to purchase an additional 450,000 ADSs.