WestPark Capital Announces Closing of a $7 Million IPO for OneConstruction Group Limited (NASDAQ:ONEG)

Rhea-AI Summary

OneConstruction Group (NASDAQ:ONEG), a Hong Kong-based structural steelwork contractor, has successfully completed its Initial Public Offering (IPO) raising $7 million. The company offered 1,750,000 ordinary shares at $4.00 per share, with trading commencing on the Nasdaq Capital Market on December 31, 2024, under the ticker symbol 'ONEG'.

WestPark Capital served as the book-running manager for the offering. The underwriters have been granted a 45-day option to purchase up to an additional 15% of the aggregate number of ordinary shares. The IPO was conducted through a registration statement on Form F-1, which was declared effective by the SEC on December 20, 2024.

Positive

• Successfully raised $7 million through IPO
• Achieved NASDAQ listing, providing access to U.S. capital markets
• Underwriters granted 45-day option for additional 15% share purchase

Negative

• Small IPO size may indicate market capitalization
• Single-market focus (Hong Kong) suggests geographic concentration risk

Insights

Investment Banking Analyst

The successful completion of OneConstruction Group's $7 million IPO marks a strategic entry into the U.S. capital markets for this Hong Kong-based structural steelwork contractor. The offering of 1,750,000 ordinary shares at $4.00 per share, coupled with a 45-day underwriter option for an additional 15% of shares, provides the company with important growth capital while establishing a foundation for potential future fundraising.

The IPO's pricing and size suggest a cautious approach to market entry, typical for small-cap foreign issuers. The relatively modest raise indicates the company is likely focusing on establishing market presence rather than aggressive expansion. The inclusion of an overallotment option demonstrates underwriter confidence in potential market demand, though the small float size could lead to increased volatility in early trading.

For context, at the IPO price, OneConstruction Group's market capitalization of approximately $43.5 million positions it as a micro-cap stock in the industrial sector. The timing of the listing, coming at the start of 2025, suggests strategic positioning to capture new year investment flows, though success will largely depend on the company's ability to execute its growth strategy and maintain visibility in a market where small-cap foreign issuers often struggle to gain sustained investor attention.

Capital Markets Specialist

The listing on the Nasdaq Capital Market represents a significant milestone in expanding access to U.S. capital markets for Asian construction sector companies. WestPark Capital's role as book-runner is noteworthy, as they specialize in emerging growth sectors and micro-cap offerings. The SEC registration and compliance process, culminating in the December 20, 2024 effectiveness date, demonstrates regulatory validation of the offering structure.

Key technical aspects of this IPO warrant attention:

• The tight pricing band and modest size suggest a focus on ensuring successful placement rather than maximizing proceeds
• The 45-day overallotment option provides flexibility to absorb excess demand while maintaining price stability
• The direct listing on Nasdaq Capital Market, rather than an uplisting from OTC markets, indicates confidence in meeting higher listing standards

While the initial float is relatively small, the successful completion of this IPO opens doors for future capital raising opportunities through follow-on offerings or other financing instruments, provided the company can demonstrate strong operational execution and market performance.

LOS ANGELES--(BUSINESS WIRE)-- WestPark Capital today announced the closing of the initial public offering of 1,750,000 ordinary shares at a public offering price of $4.00 per share (the “Offering”) for OneConstruction Group Limited (“OneConstruction Group” or the “Company”), a structural steelwork contractor in Hong Kong. The Company has granted the underwriters 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 began trading on the Nasdaq Capital Market on December 31, 2024, under the ticker symbol “ONEG”.

WestPark Capital was the book-running manager for 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 by standard mail to WestPark Capital, Inc., 1800 Century Park East, Suite 220, Los Angeles, CA, 90067. 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 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/20250106019697/en/

WestPark Capital, Inc.

Jason Stern

info@wpcapital.com

Source: WestPark Capital

FAQ

How much did OneConstruction Group (ONEG) raise in its IPO?

OneConstruction Group raised $7 million in its IPO by offering 1,750,000 ordinary shares at $4.00 per share.

When did OneConstruction Group (ONEG) begin trading on NASDAQ?

OneConstruction Group began trading on the Nasdaq Capital Market on December 31, 2024, under the ticker symbol ONEG.

What is the underwriters' option in OneConstruction Group's (ONEG) IPO?

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

What is OneConstruction Group's (ONEG) main business activity?

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

What was the IPO price per share for OneConstruction Group (ONEG)?

The IPO price was set at $4.00 per ordinary share.