Oriental Rise Holding Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

Oriental Rise Holding (NasdaqCM: ORIS), an integrated tea products supplier in mainland China, has announced the pricing of its initial public offering (IPO). The company is offering 1,750,000 ordinary shares at $4 per share, aiming to raise $7 million in gross proceeds. Trading is expected to commence on October 17, 2024, on the Nasdaq Capital Market under the ticker symbol 'ORIS'.

The underwriter has a 45-day option to purchase up to an additional 262,500 shares. The IPO is set to close on October 18, 2024. Proceeds will be used for settling tea garden acquisition rights, constructing a new production plant, acquiring machinery, and general corporate purposes. US Tiger Securities, Inc. is the sole book runner for the offering.

Positive

• Initial public offering (IPO) to raise $7 million in gross proceeds
• Listing on Nasdaq Capital Market, potentially increasing visibility and liquidity
• Proceeds to be used for business expansion and operational improvements
• Option for underwriter to purchase additional shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders' ownership due to new share issuance
• Uncertainty regarding market reception and post-IPO stock performance

Insights

Financial Analyst

The IPO of Oriental Rise Holding presents a significant development in the tea industry. Pricing at $4 per share for 1,750,000 ordinary shares, the company aims to raise $7 million in gross proceeds. This capital injection is important for Oriental Rise's expansion plans, including settling acquisition costs, constructing a new production plant and acquiring new machinery.

The company's listing on Nasdaq under the ticker "ORIS" could potentially increase its visibility and access to capital markets. However, investors should note that the relatively small offering size might limit initial liquidity. The use of proceeds indicates a focus on vertical integration and production capacity expansion, which could strengthen Oriental Rise's market position in China's competitive tea industry.

The firm commitment underwriting and the involvement of US Tiger Securities as the sole book runner suggest a level of confidence in the offering. However, as with any IPO, especially in a niche market, investors should carefully consider the risks and growth potential before making investment decisions.

Market Research Analyst

Oriental Rise's IPO reflects growing investor interest in China's tea market, which has significant cultural importance and economic potential. The company's integrated supply chain model, from tea gardens to final products, positions it well in a market that values quality and authenticity.

The planned expansion, including a new production plant and machinery upgrades, suggests Oriental Rise is preparing for increased demand and potentially exploring export opportunities. This could be a response to the global trend of rising tea consumption, particularly in premium and specialty segments.

However, investors should consider the competitive landscape and regulatory environment in China's agricultural sector. The success of Oriental Rise will depend on its ability to differentiate its products, manage supply chain risks and navigate potential trade tensions that could affect international expansion plans. The IPO's reception will be a key indicator of market sentiment towards Chinese consumer goods companies in the current economic climate.

Ningde, China, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Oriental Rise Holding Limited (“Oriental Rise” or the "Company") (NasdaqCM: ORIS), an integrated supplier of tea products in mainland China, today announced the pricing of its initial public offering (the "Offering") of 1,750,000 ordinary shares at a public offering price of $4 per ordinary share, for total gross proceeds of $7 million, before deducting underwriting discounts and offering expenses. The Offering is being conducted on a firm commitment basis. The ordinary shares are expected to commence trading on Nasdaq Capital Market under the ticker symbol “ORIS” on October 17, 2024.

The Company has granted the underwriter an option, exercisable within 45 days from the date of the underwriting agreement, to purchase up to an additional 262,500 ordinary shares at the public offering price, less underwriting discounts and expenses. The Offering is expected to close on October 18, 2024, subject to customary closing conditions.

The Company intends to use the proceeds from the Offering for: i) settlement of the outstanding amount for the acquisition of the contractual agreement rights of some of its existing tea gardens; ii) establishment and construction of its new production plant; iii) acquisition of new machinery and equipment; and iv) general corporate purposes and working capital.

US Tiger Securities, Inc. is acting as sole book runner for the Offering. The Crone Law Group is acting as counsel to the Company. VCL Law LLP is acting as counsel to the underwriter with respect to the Offering.

A registration statement on Form F-1, as amended (File No. 333-274976), relating to the Offering was previously filed with the Securities and Exchange Commission (“SEC”) by the Company, and subsequently declared effective by the SEC on September 30, 2024. The Offering is being made only by means of a prospectus, forming a part of the registration statement. A final prospectus relating to the Offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus related to the Offering may be obtained, when available, from US Tiger Securities, Inc., 437 Madison Avenue, 27th Floor, New York, New York 10022, or by telephone at +1 646-978-5188.

Before you invest, you should read the final prospectus and other documents the Company has filed or will file with the SEC for more complete 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 Oriental Rise Holding Limited

Oriental Rise Holding Limited is an integrated supplier of tea products in mainland China. Our major tea products include (i) primarily-processed tea consisting of white tea and black tea, and (ii) refined white tea and black tea. Our business operations are vertically integrated, covering cultivation, processing of tea leaves and the sale of tea products to tea business operators (such as wholesale distributors) and end-user retail customers in mainland China. We operate tea gardens located in Zherong County, Ningde City in Fujian Province of mainland China. For more information, visit the Company's website at https://ir.mdhtea.cn/.

Forward-Looking Statements

All statements other than statements of historical fact 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 current expectations and projections about future events and financial trends 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 "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update 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 in its other filings with the SEC.

For more information, please contact:

Investor Relations:
Sherry Zheng
Weitian Group LLC
Phone: 718-213-7386
Email: shunyu.zheng@weitian-ir.com

FAQ

What is the IPO price for Oriental Rise Holding (ORIS) shares?

Oriental Rise Holding (ORIS) has priced its initial public offering at $4 per ordinary share.

How many shares is Oriental Rise Holding (ORIS) offering in its IPO?

Oriental Rise Holding (ORIS) is offering 1,750,000 ordinary shares in its initial public offering.

When will Oriental Rise Holding (ORIS) start trading on Nasdaq?

Oriental Rise Holding (ORIS) is expected to commence trading on the Nasdaq Capital Market on October 17, 2024.

What will Oriental Rise Holding (ORIS) use the IPO proceeds for?

Oriental Rise Holding (ORIS) intends to use the IPO proceeds for settling tea garden acquisition rights, constructing a new production plant, acquiring machinery, and general corporate purposes.