WestPark Capital Announces Closing of $5 Million IPO for Jinxin Technology Holding Company (Nasdaq: NAMI)

Rhea-AI Summary

Jinxin Technology Holding Company (NAMI) has successfully completed its Initial Public Offering (IPO) on Nasdaq, raising $5 million through the sale of 1,250,000 American Depositary Shares (ADSs) at $4.00 per ADS. Each ADS represents eighteen ordinary shares of the company. Trading commenced on December 06, 2024, under the ticker symbol 'NAMI'. The company, a digital content service provider in China, granted underwriters a 60-day option to purchase up to an additional 187,500 ADSs at the initial offering price. WestPark Capital served as the Bookrunner for the offering.

Positive

• Successfully raised $5 million through IPO
• Achieved Nasdaq listing
• Underwriters granted option for additional 187,500 ADS purchase

Negative

• Small IPO size of only $5 million indicates capital raise
• High share-to-ADS ratio (18:1) suggests potential for significant dilution

Insights

Financial Analyst

This $5 million IPO represents a modest entry into the US capital markets for Jinxin Technology, a Chinese digital content provider. The offering structure of 1,250,000 ADSs priced at $4.00 per ADS (with each ADS representing 18 ordinary shares) suggests a relatively small float and conservative valuation approach. The additional 187,500 ADS option granted to underwriters could provide some flexibility for price stabilization post-IPO. While the gross proceeds are relatively small compared to typical tech IPOs, it provides Jinxin with a Nasdaq listing that could serve as a foundation for future capital raises. The timing is particularly noteworthy given the challenging environment for Chinese companies listing in the US amid regulatory scrutiny and market volatility.

Market Research Analyst

The successful completion of this IPO, despite its modest size, signals continued interest in Chinese tech companies from US investors, particularly in the digital content sector. The 18:1 ADS ratio creates a higher trading price point which could attract more institutional interest. The involvement of WestPark Capital, known for working with emerging growth companies, suggests a focus on smaller-cap growth stories. However, investors should note that Chinese ADSs carry specific risks including regulatory concerns from both US and Chinese authorities. The relatively small float could lead to higher volatility in trading, while the overallotment option may help stabilize early trading patterns.

LOS ANGELES--(BUSINESS WIRE)-- WestPark Capital today announced the closing of a $5 Million Initial Public Offering for Jinxin Technology Holding Company (the “Company”) (Nasdaq: NAMI), an innovative digital content service provider in China. The offering consisted of 1,250,000 American Depositary Shares (“ADSs”) at a price to the public of $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 $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.

WestPark Capital, Inc. was Bookrunner for 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 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. In addition, copies of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

About WestPark Capital, Inc.

WestPark Capital is a full-service investment bank focused on emerging growth sectors such as healthcare, software, technology, biotechnology, financial services, manufacturing, consumer products, media and telecom industries, among other categories. WestPark Capital provides a comprehensive range of corporate finance services, including initial public offerings, follow-on offerings, private placements, CMPOs, RDs, ATM, SIPOs and corporate finance advisory services. Additional information about WestPark Capital is available at www.wpcapital.com or at info@wpcapital.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these 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 any such state or jurisdiction.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210024740/en/

WestPark Capital, Inc.

Jason Stern

info@wpcapital.com

Source: WestPark Capital

FAQ

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

Jinxin Technology (NAMI) began trading on Nasdaq on December 06, 2024.

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

Jinxin Technology (NAMI) raised $5 million in gross proceeds through its IPO.

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

The IPO price was $4.00 per ADS.

How many ordinary shares does each NAMI ADS represent?

Each ADS represents eighteen (18) ordinary shares of the company.