Leishen Energy Holding Co., Ltd. Announces Closing of $5,500,000 Initial Public Offering

Rhea-AI Summary

Leishen Energy Holding (Nasdaq: LSE) has completed its initial public offering, raising $5.5 million through the sale of 1,375,000 ordinary shares at $4.00 per share. Trading began on the Nasdaq Capital Market on December 19, 2024, under the symbol 'LSE'. The company granted underwriters a 45-day option to purchase up to 206,250 additional shares.

The net proceeds will fund the construction of a high-tech manufacturing industrial park in Nanjing Lishui High-tech Development Zone, establish a smart manufacturing and new energy R&D center, purchase equipment and patented technologies, expand presence in PRC Southwest oil and gas market, and strengthen working capital. Dominari Securities led the underwriting, with Revere Securities as co-underwriter.

Positive

• Successfully raised $5.5 million through IPO
• Secured listing on Nasdaq Capital Market
• Clear allocation plan for proceeds targeting growth initiatives
• Potential for additional capital through underwriters' option

Negative

• Relatively small IPO size might limit growth potential
• Potential dilution if underwriters exercise additional share option

Insights

Investment Banker

This IPO represents a strategic move for Leishen Energy, but the relatively modest raise of $5.5 million at $4.00 per share signals a conservative market entry. The company's focus on clean-energy equipment for oil and gas presents an interesting position in the energy transition space, though the small offering size may limit initial market impact. The firm commitment structure from Dominari Securities provides some validation, but the low float of 1,375,000 shares could lead to significant volatility.

The planned allocation of proceeds toward manufacturing infrastructure and R&D demonstrates a growth-oriented strategy, particularly in China's expanding oil and gas market. However, investors should note that small-cap Chinese IPOs have historically shown high volatility and regulatory risks. The 45-day underwriter option for additional shares could provide some price stability mechanism if exercised.

Clean Energy Market Analyst

Leishen Energy's market positioning at the intersection of clean energy and traditional oil & gas infrastructure represents a pragmatic approach to energy transition. The focus on the PRC Southwest oil and gas market indicates targeting a specific growth region where modernization of energy infrastructure is needed. The planned high-tech manufacturing facility in Nanjing Lishui High-tech Development Zone could strengthen domestic supply chains, though the IPO proceeds may necessitate additional funding rounds.

The smart manufacturing and new energy R&D center initiative suggests a long-term commitment to technological advancement, but the modest capital raise may constrain the scope and pace of innovation. The company's strategy aligns with China's dual goals of energy security and environmental sustainability, though execution capabilities remain to be proven.

IPO Market Specialist

The timing and structure of this IPO reflect current market conditions for Chinese companies listing in the US. The $4.00 price point and small float suggest a cautious approach, likely influenced by recent market skepticism toward Chinese listings. The involvement of smaller investment banks like Dominari Securities and Revere Securities, rather than major underwriters, is typical for IPOs of this size but may impact initial institutional interest and trading liquidity.

The 45-day option for underwriters to purchase additional shares at the IPO price provides flexibility for market stabilization, though the small size of the potential additional float (15% of the initial offering) may limit its effectiveness. Post-IPO performance will likely depend heavily on the company's ability to execute its growth strategy and navigate both US and Chinese regulatory requirements.

Beijing, China, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Leishen Energy Holding Co., Ltd. (the “Company” or “Leishen Energy”) (Nasdaq: LSE), a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, today announced the closing of its initial public offering (the “Offering”) of 1,375,000 ordinary shares (“Shares”) at a public offering price of $4.00 per Share. The Shares began trading on the Nasdaq Capital Market on December 19, 2024, under the ticker symbol “LSE”.

The Company received aggregate gross proceeds of $5,500,000 from this Offering, before deducting underwriting discounts and commissions and offering expenses payable by the Company. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 206,250 Shares at the public offering price, less the underwriting discount.

The Company intends to use the net proceeds of the Offering for the construction of a high-tech manufacturing industrial park in the Nanjing Lishui High-tech Development Zone, PRC, for the establishment of its smart manufacturing and new energy R&D center, for the purchase of business equipment and other patented technologies, to strengthen and expand our presence in the PRC Southwest oil and gas market, and to bolster its working capital.

The offering was conducted on a firm commitment basis. Dominari Securities LLC acted as lead underwriter and Revere Securities LLC as co-underwriter (collectively, the “underwriters”) for the Offering. Sichenzia Ross Ference Carmel LLP acted as U.S. counsel to the Company for the Offering, and VCL Law LLP acted as counsel to the underwriters in connection with the Offering.

The Shares described above are offered by the Company pursuant to a registration statement on Form F-1, as amended (File Number: 333-282433), that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 18, 2024. The Offering was made only by means of a prospectus, forming a part of the effective registration statement. A copy of the final prospectus relating to the Offering may be obtained from Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor New York, NY 10022, Attention: Eric Newman, or by calling (212) 393-4500 or emailing info@dominarisecurities.com or by logging on to 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 complete information about the Company and the Offering. This press release shall 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 offers, solicitations or sales would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. Any offers, solicitations, or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Leishen Energy Holding Co., Ltd.

The Leishen Group was founded in 2007 and is a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, with a commitment to providing customers with high-performance, safe and cost-effective energy solutions. Our major lines of business include (i) sale of clean-energy industry; (ii) new energy production and operation; (iii) digitalization and integration equipment; and (iv) oil and gas engineering technical services. At present, the Group holds more than 70 patents and software copyrights, forming a comprehensive ecosystem of core technical capabilities. Currently, our business operations have expanded beyond the PRC to Central Asia, and Southeast Asia, and our service abilities and quality have been widely recognized and praised by foreign customers. Efficient, safe and energy-saving equipment combined with professional technical services have enabled our brand to gain positive attention and recognition from our customers and enabled us to become a well-known equipment and services provider in the oil and gas industry. For more information, please visit the Company’s website: www.r-egroup.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s share 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 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 “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. 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:

Leishen Energy Holding Co., Ltd.

Investor Relations Department

Email: ir@r-egroup.com

FAQ

How much did Leishen Energy (LSE) raise in its IPO?

Leishen Energy raised $5.5 million in gross proceeds through its IPO by selling 1,375,000 ordinary shares at $4.00 per share.

When did Leishen Energy (LSE) start trading on Nasdaq?

Leishen Energy began trading on the Nasdaq Capital Market on December 19, 2024, under the ticker symbol 'LSE'.

What is the underwriters' option in Leishen Energy's (LSE) IPO?

The underwriters have a 45-day option to purchase up to an additional 206,250 shares at the public offering price, less the underwriting discount.

How will Leishen Energy (LSE) use its IPO proceeds?

The proceeds will fund a high-tech manufacturing industrial park, establish an R&D center, purchase equipment and technologies, expand in the PRC Southwest oil and gas market, and strengthen working capital.

Who were the underwriters for Leishen Energy's (LSE) IPO?

Dominari Securities acted as lead underwriter, and Revere Securities served as co-underwriter for the IPO.