Li Bang International Corporation Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Li Bang International Inc., a Chinese stainless steel commercial kitchen equipment company, has announced the pricing of its initial public offering (IPO). The company is offering 1,520,000 ordinary shares at US$4.00 per share, aiming to raise US$6.08 million in gross proceeds. The shares are set to begin trading on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol 'LBGJ'.

The IPO is expected to close around October 24, 2024. Li Bang has granted underwriters a 45-day option to purchase up to an additional 228,000 shares. Proceeds will be used for plant construction, equipment procurement, marketing, R&D, and working capital. Craft Capital Management is the lead underwriter, with EF Hutton as co-underwriter.

Positive

• Successful pricing of IPO at US$4.00 per share
• Expected gross proceeds of US$6.08 million from the offering
• Listing on Nasdaq Capital Market under ticker 'LBGJ'
• Funds allocated for plant construction and equipment procurement
• Investment in research and development

Negative

• Potential dilution of existing shareholders' value
• Underwriters' option to purchase additional shares may further dilute ownership

Insights

Financial Analyst

Li Bang International 's IPO pricing at $4.00 per share for 1,520,000 ordinary shares is a significant milestone. The expected gross proceeds of $6.08 million indicate moderate investor interest, considering the current market conditions. The listing on Nasdaq Capital Market under "LBGJ" provides increased visibility and liquidity for the stock.

The $6.08 million raised, while not substantial for a public company, could be impactful for Li Bang's growth plans. The allocation of funds towards plant construction, equipment procurement and R&D suggests a focus on expanding production capacity and improving product offerings. This could potentially lead to increased market share in China's commercial kitchen equipment sector.

However, investors should note that the relatively small offering size and the company's focus on the Chinese market may limit its global appeal. The 45-day option for underwriters to purchase additional shares could provide some price stability post-IPO. Overall, while this IPO represents a growth opportunity for Li Bang, it's essential for investors to carefully evaluate the company's financials and growth prospects in the competitive stainless steel commercial kitchen equipment market.

Market Research Analyst

Li Bang's IPO reflects the growing interest in China's commercial kitchen equipment sector. The stainless steel kitchen equipment market in China is expected to expand due to urbanization and the growth of the food service industry. Li Bang's public listing could position it to capitalize on this trend.

The $6.08 million raised, while modest, may provide Li Bang with a competitive edge in terms of production capacity and product innovation. However, the company will face challenges from both domestic and international competitors in a market that values quality and cost-effectiveness.

Investors should consider the potential impact of China's economic policies on the food service industry and, by extension, on Li Bang's growth prospects. The company's success will likely depend on its ability to adapt to changing consumer preferences and regulatory environments in the Chinese market.

The IPO's timing amidst global economic uncertainties suggests confidence in the company's business model, but also underscores the need for cautious evaluation of its long-term growth strategy and market positioning.

Jiangyin, China, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Li Bang International Corporation Inc. (the “Company” or “Li Bang”), a company engaged in designing, developing, producing, and selling stainless steel commercial kitchen equipment in China, today announced the pricing of its initial public offering (the “Offering”) of 1,520,000 ordinary shares at a public offering price of US$4.00 per ordinary share. The ordinary shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on October 23, 2024, under the ticker symbol “LBGJ.”

The Company expects to receive aggregate gross proceeds of US$6.08 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 228,000 ordinary shares, representing 15% of the ordinary shares sold in the Offering, at the public offering price less underwriting discounts. The Offering is expected to close on or about October 24, 2024, subject to the satisfaction of customary closing conditions.

Net proceeds from the Offering will be used for plant construction, equipment procurement, advertising and marketing, research and development, and general working capital.

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 the U.S. counsel to the Company, and Sichenzia Ross Ference Carmel LLP is acting as the 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 Securities and Exchange Commission (the “SEC”) (File Number: 333-262367), 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 prospectus relating to the Offering may be obtained, when available, from Craft Capital Management LLC at 377 Oak St, Lower Concourse, Garden City, NY 11530, or via email at info@craftcm.com, or telephone at (800) 550-8411; or from EF Hutton at 590 Madison Avenue, 39th Floor, New York, NY 10022, or via email at syndicate@efhutton.com, or telephone at (212) 404-7002. In addition, copies of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

Before you invest, you should read the registration statement and the preliminary prospectus contained therein and the final prospectus, when available, and other documents the Company has filed or will file with the SEC for more complete 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 Li Bang International Corporation Inc.
Li Bang International Corporation Inc. specializes in the independently research, development, production, and sale of stainless steel commercial kitchen equipment under its own “Li Bang” brand in China. In addition to its product offerings, the Company provides comprehensive services from early-stage design of commercial kitchen appliances to equipment installation and after-sales maintenance. Committed to innovation and high-quality, the Company uses modern production facilities and state-of-the-art procedures and strives to become a first-class commercial kitchen appliance manufacturer in China. The Company’s long-term vision is to establish itself as a household name, synonymous with the products it manufactures. For more information, please visit the company’s website at https://ir.libangco.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:

Li Bang International Corporation Inc.
Investor Relations Department
Email: libangsales@libangco.com

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

FAQ

What is the IPO price for Li Bang International (LBGJ) shares?

Li Bang International (LBGJ) has priced its IPO at US$4.00 per ordinary share.

How many shares is Li Bang International (LBGJ) offering in its IPO?

Li Bang International (LBGJ) is offering 1,520,000 ordinary shares in its initial public offering.

When will Li Bang International (LBGJ) shares start trading on Nasdaq?

Li Bang International (LBGJ) shares are expected to commence trading on the Nasdaq Capital Market on October 23, 2024.

What is the expected gross proceeds from Li Bang International's (LBGJ) IPO?

Li Bang International (LBGJ) expects to receive aggregate gross proceeds of US$6.08 million from its IPO.

How does Li Bang International (LBGJ) plan to use the IPO proceeds?

Li Bang International (LBGJ) plans to use the IPO proceeds for plant construction, equipment procurement, advertising and marketing, research and development, and general working capital.