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

Rhea-AI Summary

OrangeKloud Technology announced the pricing of its initial public offering (IPO) at $4.75 per share, totaling $13.1 million. The offering includes 2,750,000 shares of Class A Ordinary Shares, with an additional 45-day option for Maxim to purchase up to 412,500 more shares at the same price. Trading will commence on the Nasdaq Capital Market under the ticker ORKT on July 25, 2024. The IPO is expected to close on July 26, 2024, pending customary conditions. Maxim Group is the sole book-running manager for the offering. Legal counsel includes Loeb & Loeb LLP in the U.S., Bird & Bird ATMD LLP in Singapore, and Harney Westwood & Riegels in the Cayman Islands, with Pryor Cashman LLP supporting Maxim.

Positive

• IPO priced at $4.75 per share, total proceeds expected to be $13.1 million.
• Shares begin trading on Nasdaq under ticker ORKT on July 25, 2024.
• Maxim Group is the sole book-running manager for the offering.

Negative

• Potential for shareholder dilution due to the 45-day option for an additional 412,500 shares.

Insights

Financial Analyst

OrangeKloud Technology Inc.'s IPO pricing marks a significant milestone for the company and offers intriguing insights for investors. The $4.75 per share price point and the $13.1 million expected gross proceeds suggest a cautious yet optimistic approach to market entry.

The offering of 2,750,000 Class A Ordinary Shares indicates a strategic decision to maintain a certain level of control while accessing public capital. The additional 45-day option for underwriters to purchase up to 412,500 more shares provides flexibility to meet potential excess demand, which could be a positive signal if exercised.

Investors should note the company's choice of the Nasdaq Capital Market, which typically hosts smaller, high-growth potential firms. This aligns with OrangeKloud's likely positioning as an emerging player in the technology sector.

The involvement of reputable legal firms and Maxim Group as the sole book-running manager adds credibility to the offering. However, the relatively modest size of the IPO suggests OrangeKloud may be testing the waters, possibly planning for future funding rounds as it grows.

While the IPO provides a cash injection and increased visibility, investors should carefully consider the company's fundamentals, growth strategy and competitive position in the tech landscape before making investment decisions based solely on this market debut.

Market Research Analyst

OrangeKloud's IPO comes at an interesting time in the tech sector. The $13.1 million raise, while modest by some standards, could indicate a strategic move to capitalize on current market conditions or a specific growth opportunity.

The pricing at $4.75 per share sits comfortably in the typical range for smaller tech IPOs, balancing accessibility for retail investors with the need to raise substantial capital. This price point could attract a diverse investor base, potentially leading to higher liquidity post-IPO.

The decision to list on the Nasdaq Capital Market is telling. This exchange is often favored by emerging growth companies, suggesting OrangeKloud sees itself in a high-growth phase. Investors should watch for rapid expansion plans or significant R&D investments in the near future.

The 15% over-allotment option is standard practice but could be a key indicator of demand. If exercised, it would bring the total raise to approximately $15 million, providing additional working capital for the company's growth initiatives.

Given the current economic climate, OrangeKloud's ability to successfully price its IPO may signal investor appetite for new tech offerings, particularly from the Asian market. This could pave the way for other similar-sized tech companies considering public listings.

SINGAPORE, July 24, 2024 (GLOBE NEWSWIRE) -- OrangeKloud Technology Inc. (“ORKT” or “the Company”) today announced the pricing of its initial public offering of an aggregate of 2,750,000 shares of its Class A Ordinary Shares (“the Offering”). The Offering is priced at $4.75 per share (the “Offering Price”).

In addition, the Company has granted Maxim (as defined below) a 45-day option to purchase up to an additional 412,500 shares of its Class A Ordinary Shares at the initial public offering price (“the Over-allotment”), less underwriting discounts and commissions.

Assuming that the Over-allotment is not exercised, the gross proceeds to ORKT from the Offering, before deducting underwriting discounts and commissions and estimated offering expenses payable by ORKT, is expected to be approximately $13.1 million.

The shares are expected to begin trading on the Nasdaq Capital Market under the ticker symbol “ORKT” on July 25, 2024. The Offering is expected to close on July 26, 2024, subject to customary closing conditions.

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.

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 any securities, and no sale of these securities may be made 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 other 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

When will ORKT begin trading on Nasdaq?

ORKT will begin trading on the Nasdaq Capital Market on July 25, 2024.

What is the price per share for ORKT's IPO?

The IPO price per share for ORKT is $4.75.

How much is ORKT expected to raise from its IPO?

ORKT is expected to raise approximately $13.1 million from its IPO.

Who is managing ORKT's IPO?

Maxim Group is the sole book-running manager for ORKT's IPO.

What is the ticker symbol for OrangeKloud Technology?

The ticker symbol for OrangeKloud Technology is ORKT.