OneConstruction Group Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

OneConstruction Group , a Hong Kong-based structural steelwork contractor, has announced the pricing of its initial public offering (IPO) of 1,750,000 ordinary shares at US$4.00 per share. The company's shares are set to begin trading on the Nasdaq Capital Market under the ticker symbol ONEG on December 31, 2024. Underwriters have a 45-day option to purchase up to 15% additional shares. The IPO is being conducted on a firm commitment basis, with American Trust Investment Services and WestPark Capital serving as underwriters, and WestPark Capital acting as the book-running manager.

Positive

• Successfully priced IPO at $4.00 per share
• Secured listing on Nasdaq Capital Market
• Potential for additional capital through 15% underwriter option

Negative

• Relatively small IPO size of 1.75 million shares
• Potential dilution from underwriter's 15% option exercise

Insights

IPO Analyst

<p>This IPO marks OneConstruction Group's entry into the U.S. public markets with a relatively modest offering of <money>$7 million</money> (1.75M shares at <money>$4.00</money> per share). For a Hong Kong-based structural steelwork contractor, the small offering size and choice of the Nasdaq Capital Market suggests this is primarily aimed at increasing visibility and establishing a U.S. presence rather than raising substantial capital.</p><p>The involvement of smaller investment banks (American Trust Investment Services and WestPark Capital) as underwriters, rather than bulge bracket firms, aligns with the offering's scale. The firm commitment basis provides some confidence in the deal's execution, though the 45-day overallotment option of 15% is standard for such offerings.</p><p>For retail investors, the micro-cap nature and foreign domicile warrant careful consideration. Trading liquidity could be given the small float and Hong Kong-based operations may present additional regulatory and transparency challenges compared to domestic issuers.</p>

Market Structure Specialist

<p>The timing of this IPO, launching on the last day of 2024, is strategically interesting. Year-end listings are relatively uncommon due to typically lower market activity, suggesting confidence in immediate investor interest or specific timing considerations for the company's capital needs. The choice of the Nasdaq Capital Market tier, which has lower listing requirements than the Global Market, indicates this is a smaller growth company seeking to establish market presence.</p><p>The SEC registration process, completed with effectiveness granted on December 20, moved relatively quickly, reflecting a straightforward offering structure. The dual underwriter approach with WestPark Capital as book-runner suggests a focused distribution strategy targeting specific investor segments familiar with smaller Asian industrial companies.</p>

NEW YORK, Dec. 31, 2024 /PRNewswire/ -- OneConstruction Group Limited ("OneConstruction Group" or the "Company"), a structural steelwork contractor in Hong Kong, today announced the pricing of its initial public offering of 1,750,000 ordinary shares at a public offering price of US$4.00 per share (the "Offering"). The underwriters will have a 45-day option to purchase up to 15% of the aggregate number of ordinary shares sold in the Offering. The Company's ordinary shares are expected to begin trading on the Nasdaq Capital Market on December 31, 2024, under the ticker symbol "ONEG", subject to customary closing conditions.

The Offering is being conducted on a firm commitment basis. American Trust Investment Services and WestPark Capital acted as Underwriters. WestPark Capital was the book-running manager for the Offering. Hunter Taubman Fischer & Li LLC is acting as U.S. securities counsel to the Company, and Ortoli Rosenstadt LLP is acting as U.S. securities counsel to the underwriters in connection with the Offering.

A registration statement on Form F-1 (File No. 333-28316) relating to the Offering, as amended, has been filed with the U.S. Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on December 20, 2024. The Offering is being made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained, when available, from WestPark Capital, Inc. or American Trust Investment Services, Inc., by email at syndicate@wpcapital.com or ECM@amtruinvest.com, respectively, by standard mail to WestPark Capital, Inc., 1800 Century Park East, Suite 220, Los Angeles, CA, 90067 or American Trust Investment Services, Inc., 230 W. Monroe Street, Suite 300, Chicago, IL 60606, respectively, or by telephone at (310) 843-9300 or 312-382-7000, respectively. In addition, a copy of the final prospectus, when available, can also 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 shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, 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 OneConstruction Group

OneConstruction Group is a structural steelwork contractor in Hong Kong. The Company, through its subsidiaries, specializes in the procurement and installation of structural steel for a diverse range of construction projects in Hong Kong (including residential and commercial development as well as infrastructure projects), serving both public and private sector clients. For more information, please visit the Company's website: www.oneconstruction.com

Forward-Looking Statements

All forward-looking statements, expressed or implied, in this release are based only on information currently available to us and speak only as of the date on which they are made. 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. Except as otherwise required by applicable law, we disclaim any duty to publicly update any forward-looking statement, each of which is expressly qualified by the statements in this section, to reflect events or circumstances after the date of this release. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. 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. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

Contacts

Media Relations
Ms. Callis Lau / Mr. Gary Li / Ms. Lorraine Luk
callis.lau@iprogilvy.com / gary.li@iprogilvy.com / lorraine.luk@iprogilvy.com

Investor Relations
Mr. Gordon Li
gli@oneconstruction.com.hk

 

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SOURCE OneConstruction Group Limited

FAQ

What is the IPO price and size for OneConstruction Group (ONEG)?

OneConstruction Group's IPO consists of 1,750,000 ordinary shares priced at US$4.00 per share.

When will ONEG stock begin trading on Nasdaq?

ONEG shares are expected to begin trading on the Nasdaq Capital Market on December 31, 2024.

Who are the underwriters for OneConstruction Group's IPO?

American Trust Investment Services and WestPark Capital are the underwriters, with WestPark Capital serving as the book-running manager.

What is the underwriters' option in ONEG's IPO?

Underwriters have a 45-day option to purchase up to 15% additional shares of the aggregate number of ordinary shares sold in the IPO.

What business does OneConstruction Group (ONEG) operate?

OneConstruction Group is a structural steelwork contractor based in Hong Kong.