Jinxin Technology Holding Company Announces Closing of US$5 Million Initial Public Offering

Rhea-AI Summary

Jinxin Technology Holding Company (Nasdaq: NAMI) has successfully closed its initial public offering of 1,250,000 American Depositary Shares (ADSs) at $4.00 per ADS, raising gross proceeds of $5 million. Each ADS represents eighteen ordinary shares, and trading began on December 06, 2024. The company granted underwriters a 60-day option to purchase up to 187,500 additional ADSs.

The proceeds will fund product and content development, sales and marketing initiatives, recruitment, and general corporate purposes, including potential strategic investments. The IPO was led by Craft Capital Management and WestPark Capital, Inc. as representatives, with R. F. Lafferty & Co., Inc. acting as underwriter.

Positive

• Successfully raised $5 million in gross proceeds through IPO
• Achieved Nasdaq listing under symbol NAMI
• Diversified use of proceeds targeting growth initiatives

Negative

• Small IPO size may limit operational impact
• Potential dilution from additional 187,500 ADS option granted to underwriters

Insights

Financial Analyst

The successful completion of Jinxin Technology's $5 million IPO marks its entry into the U.S. public markets, though the relatively small offering size suggests initial institutional interest. The pricing at $4.00 per ADS and modest market cap of $278 million positions it as a micro-cap stock in the digital content space. The underwriter's 60-day option for additional shares could provide some near-term price support.

The planned use of proceeds focuses on core business growth through product development and marketing, though the amount raised may be insufficient for significant market penetration given the competitive Chinese digital content landscape. The involvement of smaller investment banks like Craft Capital and WestPark Capital, rather than major underwriters, could impact trading liquidity and institutional coverage going forward.

Market Research Analyst

The timing of this IPO comes during a challenging period for Chinese tech companies listing in the U.S., amid heightened regulatory scrutiny and geopolitical tensions. As a digital content provider, Jinxin faces intense competition from established players in China's saturated market. The small raise of $5 million may limit their ability to achieve meaningful market share gains or technological advancement.

The company's strategy to potentially pursue strategic investments and acquisitions with the proceeds signals ambition for inorganic growth, but the funding could restrict their ability to execute substantial deals. Investor sentiment toward Chinese tech IPOs remains cautious, which could affect trading performance and valuation multiples in the near term.

SHANGHAI, China, Dec. 9, 2024 /PRNewswire/ -- Jinxin Technology Holding Company (the "Company") (Nasdaq: NAMI), an innovative digital content service provider in China, today announced the closing of its initial public offering (the "Offering") of 1,250,000 American Depositary Shares ("ADSs") at a price to the public of US$4.00 per ADS. Each ADS represents eighteen (18) ordinary shares of the Company. The ADSs commenced trading on December 06, 2024 under the ticker symbol "NAMI."

The Company received aggregate gross proceeds of US$5 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company granted the underwriters a 60-day option to purchase up to an additional 187,500 ADSs at the initial public offering price, less underwriting discounts.

Net proceeds from the Offering will be used for (i) product and content development; (ii) sales and marketing and brand promotions; (iii) recruitment of experienced personnel; and (iv) other general corporate purposes, and potential strategic investments and acquisitions to strengthen the Company's technological capabilities and overall ecosystem.

Craft Capital Management LLC and WestPark Capital, Inc. were the representatives in the Offering, and R. F. Lafferty & Co., Inc. acted as underwriter (collectively, the "Underwriters"). Kirkland & Ellis International LLP acted as U.S. counsel to the Company, and Hunter Taubman Fischer & Li LLC acted as U.S. counsel to the Underwriters in connection with the Offering.

Registration statements on Form F-1 relating to the Offering were filed with the Securities and Exchange Commission (the "SEC") (File Number: 333-273884 and 333-278897) and, as amended, were 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, via email at info@craftcm.com or by calling +1 800-550-8411; or from WestPark Capital, Inc. at 1800 Century Park East, Suite 220, Los Angeles, CA 90067, via email at jstern@wpcapital.com, or by calling +1-310-843-9300; or from R.F. Lafferty & Co., Inc. at 40 Wall Street, 27th Floor, New York, NY 10005, via email at info@rflafferty.com or by calling +1-212-293-9090. 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 Jinxin Technology Holding Company

Headquartered in Shanghai, China, Jinxin Technology Holding Company is an innovative digital content service provider in China. Leveraging the powerful digital content generation engine powered by advanced AI/AR/VR/digital human technologies, the Company is committed to offering users high-quality digital content services through both its own platform and the content distribution channels of its strong partners. According to Frost & Sullivan, the Company was the largest digital textbook platform in China in terms of revenue in 2022, with a market share of 12.7%.  The Company currently target K-9 students in China, with core expertise in providing them digital and integrated educational contents, and plan to further expand service offerings to provide premium and engaging digital contents to other age groups. The Company collaborates with leading textbook publishers in China and provides digital version of mainstream textbooks used in primary schools and middle schools. The Company's AI-generated content technology enables comprehensive digital contents to deliver an interactive, intelligent and entertaining learning experience. The Company distributes digital contents primarily through (i) its flagship learning app, Namibox, (ii) telecom and broadcast operators and (iii) third-party devices with our contents embedded. For more information, please visit the company's website at https://ir.namibox.com.

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 "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" 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:

Jinxin Technology Holding Company
Investor Relations Department
Email: ir@namibox.com

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

View original content:https://www.prnewswire.com/news-releases/jinxin-technology-holding-company-announces-closing-of-us5-million-initial-public-offering-302326910.html

SOURCE Jinxin Technology Holding Company

FAQ

What was the IPO price for Jinxin Technology (NAMI) shares?

Jinxin Technology's IPO price was US$4.00 per ADS (American Depositary Share).

How much money did Jinxin Technology (NAMI) raise in its IPO?

Jinxin Technology raised US$5 million in gross proceeds from its initial public offering.

When did Jinxin Technology (NAMI) begin trading on Nasdaq?

Jinxin Technology began trading on Nasdaq under the symbol NAMI on December 06, 2024.

How many ADSs were offered in Jinxin Technology's (NAMI) IPO?

Jinxin Technology offered 1,250,000 American Depositary Shares (ADSs) in its initial public offering.