Li Bang International Corporation Inc. Announces Underwriters’ Full Exercise of Over-Allotment Option

Rhea-AI Summary

Li Bang International (Nasdaq: LBGJ), a Chinese stainless steel commercial kitchen equipment company, announced the full exercise of the over-allotment option by its IPO underwriters. The underwriters purchased an additional 228,000 ordinary shares at $4.00 per share, generating extra gross proceeds of $912,000. The total offering now comprises 1,748,000 ordinary shares with gross proceeds of $6.992 million. The funds will support plant construction, equipment procurement, marketing, R&D, and working capital. Trading began on Nasdaq Capital Market on October 23, 2024, under symbol LBGJ.

Positive

• Successfully raised additional $912,000 through full exercise of over-allotment option
• Total gross proceeds increased to $6.992 million
• Recent successful listing on Nasdaq Capital Market

Negative

• None.

Insights

Financial Analyst

The full exercise of the over-allotment option signals strong institutional interest in Li Bang's IPO. The additional $912,000 brings total gross proceeds to $6.992 million, strengthening the company's capital position for planned expansions. The $4.00 per share price maintenance suggests stable market confidence since the October listing.

The allocation of proceeds towards plant construction, equipment procurement and R&D indicates a growth-focused strategy in China's commercial kitchen equipment sector. The firm commitment underwriting structure, coupled with reputable underwriters like Craft Capital and D. Boral Capital, adds credibility to the offering. However, investors should note that the relatively modest IPO size suggests the company is still in its early growth phase.

Jiangyin, China, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Li Bang International Corporation Inc. (Nasdaq: LBGJ) (the “Company” or “Li Bang”), a company engaged in designing, developing, producing, and selling stainless steel commercial kitchen equipment in China, today announced the underwriters of its initial public offering (the "Offering") have exercised their over-allotment option in full to purchase an additional 228,000 ordinary shares at the public offering price of US$4.00 per share, resulting in additional gross proceeds of $912,000. After giving effect to the full exercise of the over-allotment option, the total number of ordinary shares sold by the Company in the public offering increased to 1,748,000 ordinary shares and the gross proceeds increased to approximately US$6.992 million, before deducting underwriter discounts and other related expenses. The option closing date was November 14, 2024. The ordinary shares began trading on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol "LBGJ."

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

The Offering was conducted on a firm commitment basis. Craft Capital Management LLC acted as the representative of the underwriters, with D. Boral Capital LLC (formerly known as EF Hutton LLC) acted as the co-underwriter (collectively, the “Underwriters”) for the Offering. Ortoli Rosenstadt LLP acted as the U.S. counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted 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 was 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 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 D. Boral Capital LLC (formerly known as EF Hutton LLC) at 590 Madison Avenue, 39th Floor, New York, NY 10022, or via email at syndicate@dboralcapital.com, or telephone at (212) 970-5150. In addition, copies of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

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.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. 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 was the total amount raised in Li Bang's (LBGJ) IPO including the over-allotment option?

Li Bang raised approximately $6.992 million in gross proceeds, including $912,000 from the full exercise of the over-allotment option.

How many additional shares were sold through LBGJ's over-allotment option?

The underwriters purchased an additional 228,000 ordinary shares at $4.00 per share through the over-allotment option.

When did Li Bang (LBGJ) begin trading on the Nasdaq Capital Market?

Li Bang began trading on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol LBGJ.

What is the IPO price per share for Li Bang (LBGJ)?

The public offering price was $4.00 per share.