NETCLASS TECHNOLOGY INC. Announces Closing of $9 Million Initial Public Offering

Rhea-AI Summary

NETCLASS TECHNOLOGY, a B2B smart education IT solutions provider, has successfully completed its initial public offering (IPO) of 1,800,000 Class A ordinary shares at $5.00 per share, raising $9 million in gross proceeds. The company's shares began trading on the Nasdaq Capital Market under the symbol NTCL on December 13, 2024.

The underwriters have a 45-day option to purchase up to 270,000 additional shares. Proceeds will fund courseware and online technology platform development, expansion of services, marketing, and working capital. Newbridge Securities and Revere Securities acted as underwriters for the offering.

Positive

• Successfully raised $9 million through IPO
• Listed on Nasdaq Capital Market
• Clear allocation of funds for growth initiatives
• 45-day option for additional share purchase worth $1.35 million

Negative

• Potential dilution from additional 270,000 shares if over-allotment option is exercised
• IPO-related expenses will reduce net proceeds

Insights

Financial Analyst

The successful $9 million IPO of NETCLASS marks a significant milestone for this B2B smart education IT solutions provider. With shares priced at $5.00 and 1,800,000 Class A ordinary shares issued, the company has established a foothold in the U.S. capital markets through its NASDAQ listing. The strategic allocation of funds towards courseware development, platform enhancement and market expansion demonstrates a clear growth trajectory. The firm commitment underwriting structure provides additional credibility to the offering. The 45-day over-allotment option for an additional 270,000 shares could potentially increase the total proceeds by $1.35 million. This IPO reflects growing investor interest in the educational technology sector, particularly for companies with a strong Asian presence across Shanghai, Hong Kong and Singapore markets.

Tech Industry Analyst

NETCLASS's IPO signifies the growing importance of B2B educational technology solutions in the global market. The company's focus on developing courseware and enhancing its online technology platform positions it well in the rapidly evolving EdTech landscape. The multi-regional presence across major Asian tech hubs provides a strategic advantage for market penetration and technological innovation. The emphasis on application development services and subscription-based models aligns with current industry trends toward recurring revenue streams. The capital injection will be important for accelerating product development and scaling operations in a competitive market where technological advancement and user experience are key differentiators.

SHANGHAI and HONG KONG, Dec. 16, 2024 (GLOBE NEWSWIRE) -- NETCLASS TECHNOLOGY INC. (the “Company” or “NETCLASS”), a leading B2B smart education IT solutions provider with offices in Shanghai, Hong Kong, and Singapore, today announced the closing of its initial public offering (the “Offering”) of 1,800,000 Class A ordinary shares at a public offering price of $5.00 per ordinary share, for total gross proceeds of $9,000,000, before deducting underwriting discounts, commissions, and other related expenses.

The Company has granted the underwriters an option, exercisable within 45 days from the closing date of the Offering, to purchase up to an additional 270,000 Class A ordinary shares at the initial public offering price, less underwriting discounts to cover over-allotments, if any. Shares of the Company’s stock began trading on the Nasdaq Capital Market under the symbol “NTCL” on December 13, 2024.

The Offering was conducted on a firm commitment basis. The Company intends to use the proceeds from the Offering for the courseware and online technology platform development, expansion of application development service and subscription services, marketing and brand building, along with working capital and general corporate purposes.

Newbridge Securities Corporation and Revere Securities, LLC (the “Underwriters”) acted as Underwriters to the Offering. Ortoli Rosenstadt LLP acted as U.S. counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as U.S. counsel to Newbridge Securities Corporation, who acted as the representative of the Underwriters in connection with the Offering.

A registration statement on Form F-1 (File No. 333-278224) was filed with the Securities and Exchange Commission (“SEC”) and was declared effective by the SEC on December 12, 2024. A final prospectus relating to the offering was filed with the SEC is available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus relating to this offering may be obtained from Newbridge Securities Corporation, Attention: Equity Syndicate Department, 1200 North Federal Highway, Suite 400, Boca Raton, FL 33432, by email at syndicate@newbridgesecurities.com or by telephone at (877) 447-9625.

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 shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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.

About NETCLASS TECHNOLOGY INC.

NETCLASS TECHNOLOGY INC. is a leading B2B smart education specialist with offices in Shanghai, Hong Kong, and Singapore, providing innovative IT solutions to schools, training institutions, corporations, public agencies, and other organizations. Our services include SaaS subscription services and application software development, with solutions spanning teaching and campus management, online teaching, examinations, epidemic prevention, data storage, EDC (Education Credit) blockchain systems, and lecturer evaluation services. Our mission is to deliver reliable, high-quality products that drive sustainable growth for our customers. For more information, please visit the Company’s website: https://ir.netclasstech.com

Forward-Looking 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 identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. 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 U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

NETCLASS TECHNOLOGY INC.
Investor Relations
Email: ir@netclasstech.com

Jackson Lin
Lambert by LLYC
Phone: +1 (646) 717-4593
Email: jian.lin@llyc.global

FAQ

How much did NETCLASS TECHNOLOGY (NTCL) raise in its IPO?

NETCLASS TECHNOLOGY raised $9 million in gross proceeds through its IPO by selling 1,800,000 Class A ordinary shares at $5.00 per share.

When did NTCL stock begin trading on Nasdaq?

NTCL began trading on the Nasdaq Capital Market on December 13, 2024.

How will NETCLASS TECHNOLOGY use its IPO proceeds?

The company plans to use the proceeds for courseware and online technology platform development, expansion of application development service and subscription services, marketing and brand building, and working capital.

What is the over-allotment option for NTCL's IPO?

Underwriters have a 45-day option to purchase up to 270,000 additional Class A ordinary shares at the IPO price to cover over-allotments.

What was NTCL's IPO price per share?

The IPO price was set at $5.00 per Class A ordinary share.