3 E Network Technology Group Limited Announces Pricing of Nasdaq Initial Public Offering

Rhea-AI Summary

3 E Network Technology Group (MASK) has announced the pricing of its initial public offering on the Nasdaq Capital Market. The company is offering 1,250,000 Class A ordinary shares at $4.00 per share, aiming to raise approximately $5.00 million in gross proceeds. Trading is expected to commence on January 8, 2025, under the ticker symbol 'MASK'.

The underwriters have a 45-day option to purchase up to 187,500 additional shares. The offering is expected to close around January 10, 2025. Proceeds will be used for business expansion, working capital, R&D, and talent development. Craft Capital Management and Boustead Securities, are acting as underwriters for this firm commitment offering.

Positive

• Successfully secured Nasdaq Capital Market listing approval
• Expected to raise $5.00 million in gross proceeds
• Underwriters have option for additional 187,500 shares
• Clear allocation of proceeds for business expansion and R&D

Negative

• Relatively small IPO size of $5.00 million
• Potential dilution from underwriters' option for additional shares

Insights

IPO Analyst

This IPO pricing announcement reveals a relatively small-cap offering for 3 E Network Technology Group. At $4.00 per share for 1.25 million shares, the total raise of $5 million is notably modest for a Nasdaq listing. The pricing sits at the lower end of typical tech IPOs, suggesting cautious market sentiment or growth expectations.

The company's dual-underwriter structure with Craft Capital and Boustead Securities - both boutique firms rather than bulge bracket banks - indicates this is a smaller-scale offering targeting specific investor segments. The use of proceeds focuses on business expansion and R&D, but the capital raise may constrain significant growth initiatives.

The B2B IT solutions sector in China faces intense competition and regulatory scrutiny, making this a challenging market entry. The ticker symbol 'MASK' and dual-class share structure suggest potential corporate governance considerations that investors should examine carefully.

Market Research Analyst

The timing of this IPO in early 2025 comes amid mixed sentiment for Chinese tech listings on U.S. exchanges. The relatively small offering size and the company's focus on B2B IT solutions positions it in a niche market segment with both opportunities and significant challenges.

Key considerations include:

• The modest $5 million raise suggests near-term expansion capabilities
• The firm commitment underwriting structure provides some validation of the business model
• The 45-day underwriter option for additional shares (15% of base offering) indicates measured optimism about post-IPO demand

The allocation of proceeds across business expansion, working capital, R&D and talent management appears broadly distributed, though the funding may necessitate careful prioritization of these initiatives.

Guangzhou, China, Jan. 08, 2025 (GLOBE NEWSWIRE) -- 3 E Network Technology Group Limited (the "Company" or "3e Network")(Proposed Nasdaq Ticker: MASK), a business-to-business (“B2B”) information technology (“IT”) business solutions provider, today announced the pricing of its initial public offering (the "Offering") of 1,250,000 Class A ordinary shares at a public offering price of US$4.00 per share. The Class A ordinary shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on January 8, 2025 under the ticker symbol "MASK."

The Company expects to raise aggregate gross proceeds of approximately US$5.00 million from the Offering, assuming no exercise of the underwriters’ option to purchase additional shares and before deducting underwriting commissions and discounts and other related expenses. In addition, 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 187,500 additional Class A ordinary shares at the public offering price, less underwriting commissions and discounts. The Offering is expected to close on or about January 10, 2025, subject to the satisfaction of customary closing conditions.

Proceeds from the Offering will be used for (i) expansion of current businesses; (ii) general working capital; (iii) research and development; and (iv) talent development and management.

The Offering is being conducted on a firm commitment basis. Craft Capital Management LLC and Boustead Securities, LLC are acting as the underwriters (collectively, the “Underwriters”) for the Offering. Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP is acting as U.S. counsel to the Company, and Sichenzia Ross Ference Carmel LLP is acting as 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 U.S. Securities and Exchange Commission (the "SEC") (Registration No.: 333-276180) and was declared effective by the SEC on December 20, 2024.

The Offering is being made only by means of a prospectus, forming a part of the effective registration statement. Copies of the final prospectus relating to the Offering, when available, may be obtained from Craft Capital Management LLC by email at info@craftcm.com, by standard mail to 377 Oak St, Lower Concourse, Garden City, NY 11530, or by telephone at +1 (800) 550-8411; or from Boustead Securities, LLC by email at info@boustead1828.com, by standard mail to 6 Venture Ste 395, Irvine, CA 92618, or by telephone at +1 (949) 502-4408. In addition, copies of the final prospectus relating to the Offering, when available, may be obtained via 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 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 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 3 E Network Technology Group Limited

3 E Network Technology Group Limited is a business-to-business (“B2B”) information technology (“IT”) business solutions provider. Through its two subsidiaries, Guangzhou Sanyi Network and Guangzhou 3E Network, the Company began by offering integrated software and hardware solutions for the property management and exhibition services spaces. Over time, 3 E Network expanded its software solutions offerings to serve a variety of sectors, including food establishments, real estate, exhibition and conferencing, and clean energy utilities. The Company’s business comprises two main portfolios: the software development portfolio and the exhibition and conference portfolio. For more information, please visit the Company’s website at http://ir.3etech.cn.

Safe Harbor 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 “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” 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:

3 E Network Technology Group Limited
Investor Relations Department
Email: ird@3ekeji.cn

FAQ

What is the IPO price for 3 E Network Technology (MASK) shares?

3 E Network Technology (MASK) has priced its IPO at $4.00 per Class A ordinary share.

How many shares is MASK offering in its Nasdaq IPO?

MASK is offering 1,250,000 Class A ordinary shares in its initial public offering.

When will MASK stock begin trading on Nasdaq?

MASK stock is expected to begin trading on the Nasdaq Capital Market on January 8, 2025.

How will MASK use the proceeds from its IPO?

MASK will use the IPO proceeds for business expansion, general working capital, research and development, and talent development and management.

What is the total amount MASK expects to raise in its IPO?

MASK expects to raise approximately $5.00 million in gross proceeds from the IPO, before deducting underwriting commissions and expenses.

Who are the underwriters for the MASK IPO?

Craft Capital Management and Boustead Securities, are acting as the underwriters for the MASK IPO.