Pheton Holdings Ltd Announces Closing of Initial Public Offering

Rhea-AI Summary

Pheton Holdings , a healthcare solution provider specializing in brachytherapy treatment planning systems, has successfully closed its initial public offering (IPO). The company offered 2,250,000 Class A ordinary shares at $4.00 per share, raising gross proceeds of $9 million. Pheton's shares began trading on the Nasdaq Capital Market under the symbol 'PTHL' on September 5, 2024.

The underwriters have a 45-day option to purchase up to 337,500 additional shares. Proceeds will fund research and development, technology upgrades, market expansion, and operational improvements. CATHAY SECURITIES, INC. led the underwriting, with Dominari Securities as co-underwriter.

Positive

• Successfully raised $9 million in gross proceeds through IPO
• Shares listed on Nasdaq Capital Market, enhancing visibility and liquidity
• Underwriters have option to purchase additional shares, potentially increasing capital raised
• Funds allocated for R&D, technology upgrades, and market expansion

Negative

• Potential dilution of existing shareholders due to new share issuance
• Additional expenses related to being a public company may impact profitability

Insights

Financial Analyst

Pheton's IPO marks a significant milestone, raising $9 million in gross proceeds. This capital injection positions the company for growth in the specialized brachytherapy treatment planning systems market. The $4.00 per share price point suggests moderate investor interest, while the Nasdaq listing enhances visibility and liquidity. The use of proceeds, focusing on R&D and market expansion, indicates a strategic approach to scaling operations. However, investors should note that at $9 million, this is a relatively small IPO, which may limit the company's ability to compete with larger, well-funded competitors in the healthcare technology space. The firm commitment underwriting structure provides some confidence, but the potential dilution from the over-allotment option is worth monitoring.

Medical Research Analyst

Pheton's focus on brachytherapy treatment planning systems addresses a niche but growing segment in cancer care. Brachytherapy, which involves placing radioactive sources directly in or near tumors, has shown promising results in certain cancers. The company's commitment to R&D could lead to advancements in treatment accuracy and efficacy. However, the competitive landscape in radiation oncology is fierce, with giants like Varian and Elekta dominating. Pheton's success will hinge on its ability to innovate and differentiate its offerings. The $9 million raised, while helpful, may not be sufficient for groundbreaking research in this high-cost field. Investors should closely watch for partnerships or clinical trial announcements as indicators of Pheton's potential to disrupt the market.

Market Research Analyst

The timing of Pheton's IPO is intriguing, given the current market volatility and investor caution towards new listings. The modest raise of $9 million suggests a conservative approach, which may resonate with risk-averse investors. The brachytherapy market, while specialized, is projected to grow at a CAGR of 7.4% through 2028, driven by increasing cancer incidence and technological advancements. Pheton's entry as a public company could position it to capture a slice of this expanding market. However, the company's ability to scale and compete against established players with deeper pockets remains a key challenge. The choice of Nasdaq Capital Market for listing aligns with its smaller size but may limit visibility compared to larger exchanges. Investors should watch for Pheton's market share gains and revenue growth in the coming quarters as indicators of its competitive strength.

BEIJING, China, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Pheton Holdings Ltd (the “Company” or “Pheton”), a healthcare solution provider specializing in treatment planning systems for brachytherapy and other related products and services, today announced the closing of its initial public offering (the “Offering”) of 2,250,000 Class A ordinary shares at a public offering price of $4.00 per share, for total gross proceeds of $9 million, before deducting underwriting discounts and other related expenses.

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 337,500 Class A ordinary shares at the initial public offering price, less underwriting discounts to cover over-allotments, if any. The Company’s Class A ordinary shares began trading on the Nasdaq Capital Market under the symbol “PTHL” on September 5, 2024.

The Offering was conducted on a firm commitment basis. The Company intends to use the proceeds from the Offering for research and development, technology upgrades, market expansion, internal control and operation system improvements, and supplemental liquidity.

CATHAY SECURITIES, INC. acted as the representative of the underwriters of the Offering, and Dominari Securities LLC was a co-underwriter. Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to the Company, and The Crone Law Group P.C. acted as U.S. counsel to the underwriters in connection with this Offering.

A registration statement on Form F-1, as amended, (File Number: 333-274944) was filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on September 4, 2024. A final prospectus relating to the Offering dated on September 4, 2024 has been filed with the SEC and is available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus relating to this Offering, when available, may be obtained from CATHAY SECURITIES, INC. by email at mark.zagotti@cathaysecurities.com, by standard mail to CATHAY SECURITIES, INC. 40 Wall Street, Suite 3600, New York, NY10005, or by telephone at +1 (631) 897-2208.

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 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.

About Pheton Holdings Ltd

Founded in 1998, Pheton Holdings Ltd, through its wholly owned operating subsidiary, Beijing Feitian Zhaoye Technology Co., Ltd., focuses on healthcare solutions for brachytherapy, a targeted radiation therapy used in cancer treatment. Its lead product, Beijing Feitian’s Treatment Planning System, helps ensure safe and effective brachytherapy using radioactive sources inside the patient to kill cancer cells and shrink tumors. Pheton Holdings is committed to leveraging its products and services to establish a potential new standard of care across multiple malignant tumor applications. For more information, please visit: http://www.ftzy.com.cn/ir.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, statements regarding the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events 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 “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any 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 other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

Pheton Holdings Ltd
Investor Relations
Email: ir@ftzy.com.cn

Jackson Lin
Lambert Global
Tel: +1 (646) 717-4593
Email: jlin@lambert.com

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FAQ

What was the IPO price for Pheton Holdings (PTHL) shares?

Pheton Holdings (PTHL) priced its IPO at $4.00 per Class A ordinary share.

How many shares did Pheton Holdings (PTHL) offer in its IPO?

Pheton Holdings (PTHL) offered 2,250,000 Class A ordinary shares in its initial public offering.

When did Pheton Holdings (PTHL) begin trading on the Nasdaq?

Pheton Holdings (PTHL) began trading on the Nasdaq Capital Market on September 5, 2024.

How much did Pheton Holdings (PTHL) raise in its IPO?

Pheton Holdings (PTHL) raised gross proceeds of $9 million in its initial public offering.

What will Pheton Holdings (PTHL) use the IPO proceeds for?

Pheton Holdings (PTHL) intends to use the IPO proceeds for research and development, technology upgrades, market expansion, internal control improvements, and supplemental liquidity.