JBDI HOLDINGS LIMITED ANNOUNCES PRICING OF $11.25 MILLION INITIAL PUBLIC OFFERING

Rhea-AI Summary

JBDI Holdings (Nasdaq: JBDI), a leading provider of eco-friendly drum and container reconditioning and recycling services in Singapore and Southeast Asia, has announced the pricing of its initial public offering. The company is offering 2,250,000 ordinary shares at $5.00 per share, aiming to raise $11.25 million in gross proceeds. Of these shares, 1,750,000 are being offered by the company, while 500,000 are from selling shareholders. Trading on the Nasdaq Capital Market is set to begin on August 27, 2024, under the ticker symbol 'JBDI'. The offering is expected to close around August 28, 2024, subject to customary conditions. Wilson-Davis & Co. is acting as the lead underwriter for this IPO.

Positive

• JBDI is raising $11.25 million in gross proceeds through its IPO
• The company will be listed on the Nasdaq Capital Market, potentially increasing visibility and liquidity
• JBDI is offering more shares (1,750,000) than the selling shareholders (500,000), indicating confidence in future growth

Negative

• Potential dilution of existing shareholders' ownership due to the issuance of new shares
• The company will not receive proceeds from the 500,000 shares offered by selling shareholders
• Market conditions and investor sentiment towards IPOs may affect the stock's performance

Insights

Financial Analyst

JBDI Holdings' IPO pricing at $5.00 per share, raising $11.25 million, marks a significant milestone for this Singapore-based environmental services company. The modest offering size suggests a cautious approach to public markets, which could be prudent given current market volatility. However, the company's focus on eco-friendly drum reconditioning aligns with growing ESG trends, potentially attracting socially conscious investors. The inclusion of selling shareholders in the offering might raise questions about insider confidence, as they're cashing out 22% of the total shares offered. Investors should closely monitor how JBDI allocates the $8.75 million (minus expenses) it will receive, as efficient use of these funds will be important for future growth and shareholder value.

Environmental Services Expert

JBDI's IPO highlights the growing importance of sustainable industrial practices in Southeast Asia. Their focus on drum reconditioning and recycling addresses a critical environmental need in the region's rapidly expanding manufacturing sector. The company's market entry timing is opportune, coinciding with stricter environmental regulations and increased corporate sustainability commitments. However, investors should consider the scalability of JBDI's services beyond Singapore. The relatively small IPO size might limit immediate expansion capabilities, potentially allowing competitors to gain ground in other Southeast Asian markets. The success of JBDI will largely depend on their ability to capitalize on first-mover advantages and establish strong partnerships with key industrial players across the region.

Market Research Analyst

JBDI's IPO represents a niche market entry into the U.S. capital markets for Southeast Asian environmental services. The $11.25 million raise, while modest, could signal growing investor interest in sustainable industrial solutions from emerging markets. However, the pricing at $5.00 per share - often considered the lower end for Nasdaq listings - might indicate cautious investor sentiment or initial demand. The company's performance post-IPO will be important in validating the market's appetite for such specialized services. Investors should watch for JBDI's ability to expand its client base and service offerings, as well as its financial performance in the coming quarters, to gauge the long-term potential of this unique market segment.

SINGAPORE, Aug. 26, 2024 (GLOBE NEWSWIRE) -- JBDI Holdings Limited (“JBDI” or the “Company”) (Nasdaq: JBDI), a leading provider of environmentally friendly and efficient reconditioning and recycling services for drums and containers in Singapore and Southeast Asia, today announced the pricing of its initial public offering (the “Offering”) of an aggregate 2,250,000 ordinary shares at a public offering price of $5.00 per share for total gross proceeds of $11.25 million, before deducting underwriting discounts and offering expenses. The Company is offering 1,750,000 ordinary shares and the selling shareholders are offering 500,000 ordinary shares. The Company will not receive any proceeds from any sale of shares by the selling shareholders.

The shares are scheduled to begin trading on the Nasdaq Capital Market on August 27, 2024, under the ticker symbol “JBDI.” The Offering is expected to close on or about August 28, 2024, subject to customary closing conditions.

Wilson-Davis & Co., Inc. is acting as lead underwriter and representative for the Offering.

A registration statement on Form F-1, as amended (File No. 333-276945), was filed with the United States Securities and Exchange Commission (the “SEC”) and was declared effective on August 26, 2024. The offering of the securities is being made only by means of a prospectus. Electronic copies of the final prospectus relating to the Offering may be obtained by visiting the SEC’s website located at http://www.sec.gov or by contacting Wilson-Davis & Co., Inc. 16479 Dallas Parkway, Suite #315, Addison, TX 75001, Attention: Louis Helsen or email: lhelsen@wdco.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 JBDI Holdings Limited

JBDI Holdings Limited is a leading provider of environmentally friendly and efficient products and services, specializing in the revitalization, reconditioning, and recycling of drums and related containers in Singapore and across Southeast Asia. With nearly four decades of industry experience, JBDI Holdings has established a strong reputation for quality and reliability, offering a wide range of reconditioned steel and plastic drums, new containers, and ancillary services. Our mission is to help our customers achieve a zero environmental impact footprint while optimizing resource allocation and reducing costs. For more information, please visit https://www.barrels.com.sg.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors,” may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

FAQ

What is the IPO price for JBDI Holdings (JBDI) shares?

JBDI Holdings has priced its initial public offering at $5.00 per ordinary share.

How many shares is JBDI offering in its IPO?

JBDI is offering a total of 2,250,000 ordinary shares, with 1,750,000 shares from the company and 500,000 from selling shareholders.

When will JBDI start trading on the Nasdaq?

JBDI shares are scheduled to begin trading on the Nasdaq Capital Market on August 27, 2024, under the ticker symbol 'JBDI'.

How much money is JBDI expecting to raise from its IPO?

JBDI Holdings aims to raise $11.25 million in gross proceeds from its initial public offering.

What is the main business of JBDI Holdings ?

JBDI Holdings is a leading provider of environmentally friendly and efficient reconditioning and recycling services for drums and containers in Singapore and Southeast Asia.