Plutus Financial Group Limited Announces Exercise of Underwriter’s Over-Allotment Option

Rhea-AI Summary

Plutus Financial Group (NASDAQ: PLUT) announced that R.F. Lafferty & Co has exercised a portion of the over-allotment option from the company's IPO, purchasing an additional 150,000 ordinary shares at $4.00 per share. This resulted in additional proceeds of $600,000, bringing the total gross proceeds to $9 million through the issuance of 2,250,000 ordinary shares.

The Hong Kong-based financial services company's IPO was led by R.F. Lafferty & Co as lead underwriter, with Revere Securities as co-underwriter. The Crone Law Group served as company counsel, while Sichenzia Ross Ference Carmel represented the underwriters. The offering was made through a Form F-1 registration statement (File No. 333-276791) declared effective by the SEC on February 4, 2025.

Positive

• Successfully raised additional $600,000 through over-allotment option
• Total IPO gross proceeds reached $9 million
• Over-allotment option exercise indicates strong initial demand

Negative

• Additional share issuance may cause dilution for existing shareholders

Insights

Financial Analyst

Plutus Financial Group's announcement about the partial exercise of their IPO over-allotment option represents a positive capital formation milestone for this newly-public company. The underwriter's purchase of an additional 150,000 shares at $4.00 per share has generated $600,000 in additional capital, bringing total gross proceeds to $9 million.

This development confirms there was sufficient market demand beyond the initial offering, though not overwhelming enthusiasm (as evidenced by only a partial exercise rather than the full over-allotment option). For context, the $9 million total raise represents approximately 16% of Plutus's $56.8 million market capitalization, providing meaningful working capital for a smaller financial services firm.

For investors, this successful completion of the entire IPO process represents market validation of Plutus's initial valuation and business model. The company now has additional liquidity to potentially strengthen its financial service offerings or operational infrastructure in the competitive Hong Kong market. While modest in absolute terms, this capital infusion provides incremental financial flexibility that could support regulatory compliance requirements, technology investments, or business development initiatives critical for newly-public financial service providers.

The completed regulatory process with the SEC also establishes Plutus as a fully-compliant public entity with the associated reporting standards and governance structures that provide increased transparency for shareholders.

Hong Kong, March 04, 2025 (GLOBE NEWSWIRE) -- Plutus Financial Group Limited (“the "Company") (NasdaqCM: PLUT), a Hong Kong-based financial services company today announced that R.F. Lafferty & Co., Inc., who acted as lead underwriter for the Company’s underwritten initial public offering (the “IPO”), has exercised a portion of the over-allotment option and purchased an additional 150,000 ordinary shares of the Company at the IPO price of $4.00 per share. As a result, the Company has raised an additional $600,000 as result of the over-allotment, for a total of $9 million in gross proceeds, before underwriting discounts and other related expenses, through the issuance of a total of 2,250,000 ordinary shares in the IPO.

R.F. Lafferty & Co., Inc. acted as lead underwriter for the IPO offering, with Revere Securities LLC acting as co-underwriter. The Crone Law Group, P.C. served as lead counsel to the Company. Sichenzia Ross Ference Carmel LLP served as lead counsel to the underwriters with respect to the Offering.

A registration statement on Form F-1, as amended (File No. 333-276791) relating to the IPO was previously filed with the Securities and Exchange Commission (the “SEC”) by the Company and subsequently declared effective by the SEC on February 4, 2025. The IPO offering was made only by means of a prospectus, forming a part of the registration statement. A final prospectus relating to the IPO offering was filed with the SEC and is available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus relating to the Offering may be obtained from R.F. Lafferty & Co., Inc., 40 Wall Street, 27th Floor, New York, NY 10005, or by telephone at (212) 293-9090.

Before you invest in the Company, you should read the final prospectus and other documents the Company has filed 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 Plutus Financial Group Limited

Plutus Financial Group Limited is a Hong Kong-based financial services holding company operating through two wholly-owned primary subsidiaries – Plutus Securities Limited (“Plutus Securities”) and Plutus Asset Management Limited (“Plutus Asset Management”). Plutus Securities, a securities broker licensed by the Securities and Futures Commission of Hong Kong (the “SFC”) and a Participant on the HKEx stock exchange in Hong Kong, provides quality securities dealing and brokerage, margin financing, securities custody, and nominee services. As a licensed securities broker, Plutus Securities provides a range of financial services, including:

• Hong Kong stock trading through the internet, mobile app, and customer phone hotline
• Margin financing;
• Securities custody and nominee services; providing secure and reliable clearing and settlement procedures;
• Access to debt capital markets; and
• Equity capital markets for issuers, offer underwriting for IPO and other equity placements, and marketing, distribution and pricing of lead-managed and co-managed offerings.
  

Plutus Asset Management, a wealth management and advisory firm licensed by the SFC, provides wealth management services including:

• Professional funds management;
• Discretionary accounts with strategies developed for customers based on individual risk tolerance and investment preferences;
• Investment consulting and advisory services for funds managed by other companies; and
• Investment funds, including a real estate fund, a fixed income fund, a private equity investment, and a hedge fund.

For more information, visit the Company's website at http://www.plutusfingroup.com./en/index.php.

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:
Plutus Financial Group Limited
Attn: Jeff Yeung
ir@plutusfingroup.com

FAQ

How much did Plutus Financial Group (PLUT) raise in total from its IPO including the over-allotment?

PLUT raised $9 million in total gross proceeds, including $600,000 from the over-allotment option exercise.

What was the IPO price per share for Plutus Financial Group (PLUT)?

PLUT's IPO price was $4.00 per share.

How many additional shares were sold through PLUT's over-allotment option?

150,000 additional ordinary shares were sold through the over-allotment option.

When was Plutus Financial Group's (PLUT) IPO registration statement declared effective?

The SEC declared PLUT's IPO registration statement effective on February 4, 2025.

What is the total number of shares issued in PLUT's IPO including over-allotment?

A total of 2,250,000 ordinary shares were issued in the IPO including the over-allotment.