Powell Max Limited Announces Partial Exercise of Over-allotment Option

Rhea-AI Summary

Powell Max (Nasdaq: PMAX), a Hong Kong-based financial communications services provider, announced that WallachBeth Capital , the lead underwriter of its initial public offering (IPO), has partially exercised the over-allotment option. This resulted in the purchase of an additional 99,765 Class A Ordinary Shares at $4.00 per share, raising $399,060 in gross proceeds. This is in addition to the previously raised $5,707,000 from the IPO.

The total gross proceeds from the offering now stand at $6,106,060 before deducting underwriting discounts and offering expenses. WallachBeth Capital is acting as Lead Underwriter, with Revere Securities as Co-Manager. K&L Gates and Hunter Taubman Fischer & Li are serving as legal counsel to the Company and Underwriter, respectively.

Positive

• Additional $399,060 raised through partial exercise of over-allotment option
• Total gross proceeds from the offering increased to $6,106,060
• Successful completion of initial public offering and listing on Nasdaq

Negative

• None.

Insights

Financial Analyst

The partial exercise of the over-allotment option by the underwriter is a moderately positive development for Powell Max The additional $399,060 in gross proceeds, while not a substantial amount relative to the initial $5,707,000 raised, does provide extra capital for the company's operations and growth initiatives.

The total gross proceeds now stand at approximately $6.1 million, which strengthens the company's financial position post-IPO. However, it's worth noting that the underwriter only exercised a portion of the over-allotment option, potentially indicating that demand for the shares was not overwhelmingly strong.

For investors, this partial exercise suggests a balanced market reception to the IPO. The additional shares sold may slightly dilute existing shareholders, but the increased liquidity could potentially benefit trading dynamics. Overall, this development modestly enhances Powell Max's capital structure without significantly altering the investment thesis.

IPO Specialist

The partial exercise of the over-allotment option, often called a "greenshoe," is a common practice in IPOs. In this case, it's a positive signal, albeit a modest one. The underwriter's decision to purchase additional shares suggests some level of market demand, which could help stabilize the stock price in the early trading days.

However, the relatively small size of the exercise (1.75% of the initial offering) indicates cautious optimism rather than overwhelming enthusiasm. This measured approach by the underwriter may reflect a balanced view of the company's prospects and current market conditions.

For Powell Max, this additional capital infusion, while not game-changing, provides a slightly larger buffer for executing its business plans. Investors should view this as a small vote of confidence in the company's near-term outlook, but not necessarily a strong indicator of long-term performance.

HONG KONG, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Powell Max Limited (Nasdaq: PMAX) (the “Company” or “Powell Max”), a financial communications services provider headquartered in Hong Kong, today announced that WallachBeth Capital LLC (the “Underwriter”), as the lead underwriter of the Company’s initial public offering (the “Offering”), has partially exercised the over-allotment option (the “Option”) to purchase an additional 99,765 Class A Ordinary Shares of the Company (the “Additional Shares”) at the public offering price of $4.00 per share. As a result, the Company has raised gross proceeds of $399,060, in addition to the previously gross proceeds of $5,707,000, before deducting underwriting discounts and offering expenses, already received in the Offering.

WallachBeth Capital LLC is acting as Lead Underwriter to the Offering and Revere Securities LLC is acting as the Co-Manager to the Offering. K&L Gates is acting as U.S. counsel to the Company, and Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the Underwriter.

A registration statement on form F-1 (333-279859) related to these securities has been filed with, and declared effective by, the United States Securities and Exchange Commission on September 4, 2024. The final prospectus relating to the securities being offered in the Offering was filed with the SEC on September 6, 2024. A copy of the final prospectus related to the Offering may be obtained from the Underwriter by email at cap-mkts@wallachbeth.com. The final prospectus is available on the SEC’s website located at http://www.sec.gov.

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 an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Powell Max Limited

Powell Max Limited is a financial communications services provider headquartered in Hong Kong. The Company engages in the provision of financial communications services that support capital market compliance and transaction needs for corporate clients and their advisors in Hong Kong. Its financial communications services cover a full range of financial printing, corporate reporting, communications and language support services from inception to completion, including typesetting, proofreading, translation, design, printing, electronic reporting, newspaper placement and distribution. The Company’s clients consist of domestic and international companies listed in Hong Kong, together with companies who are seeking to list in Hong Kong, as well as their advisors.

Forward-Looking Statements

This press release contains certain forward-looking statements. Words such as “will,” future,” “expects,” “believes,” and “intends,” or similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

For investor and media inquiries, please contact:

Company Info:

Powell Max Limited

Investor Relations

ir@janfp.com (852) 2158 2888

FAQ

How much additional capital did Powell Max (PMAX) raise through the over-allotment option?

Powell Max (PMAX) raised an additional $399,060 in gross proceeds through the partial exercise of the over-allotment option by WallachBeth Capital

What is the total amount of gross proceeds raised by Powell Max (PMAX) in its initial public offering?

The total gross proceeds raised by Powell Max (PMAX) in its initial public offering, including the over-allotment option, amount to $6,106,060 before deducting underwriting discounts and offering expenses.

At what price were the additional shares sold in Powell Max 's (PMAX) over-allotment option?

The additional shares in Powell Max 's (PMAX) over-allotment option were sold at the public offering price of $4.00 per share.

Who acted as the lead underwriter for Powell Max 's (PMAX) initial public offering?

WallachBeth Capital acted as the lead underwriter for Powell Max 's (PMAX) initial public offering.