OrangeKloud Technology Inc. Announces Closing of $13.1 Million Initial Public Offering

Rhea-AI Summary

OrangeKloud Technology Inc. (ORKT) has successfully closed its initial public offering (IPO) of 2,750,000 Class A Ordinary Shares at $4.75 per share, raising approximately $13.1 million in gross proceeds. The shares began trading on the NASDAQ Capital Market on July 25, 2024, under the symbol 'ORKT'. The company has granted underwriters a 45-day option to purchase up to an additional 412,500 shares, potentially increasing gross proceeds to $15.0 million if fully exercised.

Maxim Group, served as the sole Book-Running manager for the offering. The IPO was conducted pursuant to the company's Registration Statement on Form F-1, which was declared effective by the SEC on July 24, 2024. Investors are advised to read the prospectus and other SEC filings for detailed information about the company and the offering.

Positive

• Successful IPO raising $13.1 million in gross proceeds
• Listing on NASDAQ Capital Market, increasing visibility and liquidity
• Potential for additional $1.9 million through overallotment option

Negative

• Dilution of existing shareholders' ownership due to new share issuance
• Increased regulatory and reporting requirements as a public company

Insights

Financial Analyst

OrangeKloud Technology Inc.'s successful IPO marks a significant milestone for the Singapore-based company. The $13.1 million raised through the offering of 2,750,000 Class A Ordinary Shares at $4.75 per share provides substantial capital for growth initiatives. The potential exercise of the 15% overallotment option could boost total proceeds to $15.0 million, further strengthening the company's financial position.

The listing on the NASDAQ Capital Market under the symbol "ORKT" enhances the company's visibility and access to capital markets. This move could facilitate future fundraising efforts and potentially increase liquidity for shareholders. However, investors should note that newly listed companies often experience volatility in their early trading days.

The involvement of Maxim Group as the sole book-running manager suggests a focused approach to the IPO. While this may have streamlined the process, it's worth considering whether a broader underwriting syndicate could have provided additional market support.

Investors should closely monitor how OrangeKloud utilizes these funds and its ability to execute on growth strategies in the competitive technology sector. The company's performance in the coming quarters will be important in justifying its valuation and maintaining investor confidence.

Legal Expert

The successful completion of OrangeKloud Technology Inc.'s IPO demonstrates compliance with complex regulatory requirements. The involvement of multiple legal firms - Loeb & Loeb LLP, Bird & Bird ATMD LLP and Harney Westwood & Riegels Singapore LLP - across different jurisdictions (U.S., Singapore and Cayman Islands) highlights the intricate legal landscape of international public offerings.

The SEC's declaration of effectiveness for the Registration Statement on Form F-1 (File No. 333-277162) on July 24, 2024, is a important regulatory milestone. This approval signifies that the company has met the SEC's disclosure requirements, providing investors with access to comprehensive information about OrangeKloud's business, risks and financials.

The company's emphasis on the availability of the prospectus through the SEC's EDGAR system and Maxim Group demonstrates commitment to transparency and compliance with securities regulations. This approach helps mitigate legal risks associated with inadequate disclosure.

Investors should note the cautionary language regarding the offer and sale of securities, which is standard practice to avoid potential legal issues related to unauthorized solicitation or sales in restricted jurisdictions. This legal prudence is essential for maintaining regulatory compliance and protecting both the company and potential investors.

Market Research Analyst

OrangeKloud Technology Inc.'s IPO reflects growing investor interest in Asian technology companies, particularly those based in Singapore's thriving tech ecosystem. The successful raise of $13.1 million indicates positive market reception, despite ongoing global economic uncertainties.

The pricing of shares at $4.75 suggests a cautious yet optimistic approach, balancing the need to attract investors while maximizing capital raised. This pricing strategy could provide room for potential upside, which may appeal to early investors looking for post-IPO gains.

The decision to list on the NASDAQ Capital Market is strategic, offering exposure to a deep pool of tech-savvy investors and analysts. This could enhance OrangeKloud's global visibility and potentially facilitate future international expansion plans.

However, investors should consider the broader market context. The tech sector has seen volatility in recent years and newly listed companies often face scrutiny as they transition to public market operations. OrangeKloud's performance relative to sector peers and its ability to meet growth expectations will be critical in shaping investor sentiment in the coming months.

The 15% overallotment option is a standard feature that could provide additional price stability in early trading. If exercised, it would indicate strong demand and could be seen as a positive signal by the market.

Overall, while the IPO's success is promising, the true test for OrangeKloud will be its ability to leverage this capital to drive growth and establish a strong position in its target markets.

SINGAPORE, July 26, 2024 (GLOBE NEWSWIRE) -- OrangeKloud Technology Inc. (“ORKT” or “the Company”) today announced the closing of its previously announced initial public offering of an aggregate 2,750,000 Class A Ordinary Shares (“the Offering”) at a price of $4.75 per share (“the Offering Price”) to the public, for a total of approximately US$13.1 million of gross proceeds to the Company, before deducting underwriting discounts and offering expenses. The shares began trading on the NASDAQ Capital Market on July 25, 2024, under the symbol "ORKT." In addition, 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 412,500 Class A ordinary shares at the Offering Price, representing 15% of the Class A ordinary shares sold in the Offering (“the Overallotment”).

Assuming that the Overallotment is exercised, the Company is expected to receive gross proceeds amounting to approximately US$15.0 million before deducting underwriting discounts and commissions and estimated offering expenses.

Maxim Group, LLC (“Maxim”) is the sole Book-Running manager for the offering. Loeb & Loeb LLP, Bird & Bird ATMD LLP and Harney Westwood & Riegels Singapore LLP are acting as U.S., Singapore, and Cayman Islands legal counsel to the Company, respectively, and Pryor Cashman LLP is acting as U.S. legal counsel to Maxim for the Offering.

The Offering and resale registration statement is being conducted pursuant to the Company’s Registration Statement on Form F-1 (File No. 333-277162), as amended, declared effective by the U.S. Securities and Exchange Commission (“SEC”) on July 24, 2024. The Offering is being made only by means of a prospectus. 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. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov. Alternatively, electronic copies of the prospectus relating to the Offering may be obtained from Maxim Group, LLC, 300 Park Avenue, 16^th Floor, New York, NY 10022, by phone at +1 (212) 895-3500, or by email at syndicate@maximgrp.com. In addition, a copy of the final prospectus, when available, relating to the Offering may 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 has been prepared for informational purposes only and 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.

FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and OrangeKloud Technology Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

About OrangeKloud Technology Inc.
Orangekloud Technology Inc. (NASDAQ: ORKT) is a Singapore-based technology company which offers the eMOBIQ® No-Code platform to develop mobile applications specially designed for Small and Medium Enterprises (SMEs) and corporations. There is a suite of eMOBIQ® mobile applications designed to digitalize and streamline business processes in operations including warehousing, sales order processing, delivery and manufacturing. Customers of eMOBIQ® comes from various industries including food manufacturing and food service industry, precision engineering, construction, retail, energy, and warehouse management sectors.

OrangeKloud Technology Inc. Investor Relations Contact:
1 Yishun Industrial Street 1 #04-27/28 & 34 Aposh Building Bizhub
Singapore 768160
(+65) 6317 2050
Email: ir@orangekloud.com

Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

FAQ

How much did OrangeKloud Technology (ORKT) raise in its IPO?

OrangeKloud Technology (ORKT) raised approximately $13.1 million in gross proceeds from its initial public offering.

What was the IPO price for OrangeKloud Technology (ORKT) shares?

The IPO price for OrangeKloud Technology (ORKT) shares was $4.75 per share.

When did OrangeKloud Technology (ORKT) shares start trading on NASDAQ?

OrangeKloud Technology (ORKT) shares began trading on the NASDAQ Capital Market on July 25, 2024.

What is the stock symbol for OrangeKloud Technology on NASDAQ?

The stock symbol for OrangeKloud Technology on NASDAQ is 'ORKT'.

How many shares did OrangeKloud Technology (ORKT) offer in its IPO?

OrangeKloud Technology (ORKT) offered 2,750,000 Class A Ordinary Shares in its initial public offering.