Pheton Holdings Ltd Announces Pricing of Initial Public Offering

Rhea-AI Summary

Pheton Holdings (PTHL), a healthcare solution provider specializing in treatment planning systems for brachytherapy, announced the pricing of its initial public offering (IPO). The IPO comprises 2,250,000 Class A ordinary shares priced at $4.00 per share, totaling $9 million in gross proceeds before deductions. Underwriters have a 45-day option to purchase an additional 337,500 shares at the IPO price, minus underwriting discounts. Trading is set to commence on the Nasdaq Capital Market on September 5, 2024, under the ticker symbol 'PTHL'. The IPO is expected to close on September 6, 2024, pending customary closing conditions. CATHAY SECURITIES and Dominari Securities are leading the underwriting process. Legal counsel includes Hunter Taubman Fischer & Li for the company and The Crone Law Group P.C. for the underwriters.

Positive

• Pheton Holdings raises $9 million through IPO.
• Potential for an additional $1.35 million if underwriters exercise their option.

Negative

• Shareholder dilution from issuance of 2,250,000 new shares.

Financial Analyst

Pheton's IPO pricing at $4.00 per share for 2,250,000 Class A ordinary shares signals a cautious market entry. The total gross proceeds of $9 million are relatively modest, suggesting a conservative valuation approach. This could be a strategic move to ensure full subscription and leave room for potential upside in the aftermarket. The 45-day option for underwriters to purchase additional shares provides flexibility to meet excess demand. Listing on Nasdaq Capital Market offers visibility but also indicates the company's smaller capitalization. The firm commitment underwriting by CATHAY SECURITIES and Dominari Securities adds credibility to the offering. However, investors should note that healthcare solution providers, especially in niche areas like brachytherapy, can face regulatory challenges and market adoption hurdles.

Medical Research Analyst

Pheton's focus on brachytherapy treatment planning systems positions it in a specialized segment of oncology care. Brachytherapy, a form of targeted radiotherapy, has shown promise in treating various cancers, particularly prostate and gynecological malignancies. The company's emphasis on "other related products and services" suggests a broader portfolio, potentially including software, hardware, or support services for radiation oncology. This diversification could be a strength, allowing Pheton to capture more of the oncology market. However, the relatively small IPO size may limit immediate R&D capabilities, important in this high-tech medical field. Investors should consider the company's pipeline, existing partnerships with healthcare providers and its ability to navigate the complex regulatory landscape for medical devices and software.

Market Research Analyst

Pheton's IPO comes at a time when the global brachytherapy market is experiencing growth, driven by increasing cancer prevalence and advancements in radiation therapy technologies. The company's decision to go public could be aimed at capitalizing on this trend and securing funds for expansion. However, the modest IPO size of $9 million may limit Pheton's ability to significantly scale operations or market share in the short term. The Chinese origin of the company could present both opportunities and challenges - access to the vast Chinese healthcare market is a potential advantage, but international expansion might face regulatory hurdles. Investors should closely monitor Pheton's market penetration strategy, particularly in Western markets where competition from established medical technology firms is intense.

BEIJING, China, Sept. 05, 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 pricing of its initial public offering (the “Offering”) of 2,250,000 Class A ordinary shares at a public offering price of $4.00 per Class A ordinary share, for total gross proceeds of $9 million, before deducting underwriting discounts and other related expenses. In addition, Pheton has granted the underwriters a 45-day option to purchase up to an additional 337,500 Class A ordinary shares at the public offering price, less underwriting discounts. The shares are expected to begin trading on the Nasdaq Capital Market on September 5, 2024, under the ticker symbol “PTHL.” The offering is expected to close on September 6, 2024, subject to satisfaction of customary closing conditions.  

The Offering is being conducted on a firm commitment basis. CATHAY SECURITIES, INC. is acting as the representative of the underwriters to the Offering, and Dominari Securities LLC is a co-underwriter. Hunter Taubman Fischer & Li LLC is acting as U.S. securities counsel to the Company, and The Crone Law Group P.C. is acting as U.S. counsel to the underwriters.

A registration statement on Form F-1 relating to the Offering, as amended, was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-274944) and was declared effective by the SEC on September 4, 2024. The Offering is being made only by means of a prospectus and a free writing prospectus. Before you invest, you should read the prospectus, the free writing prospectus, and other documents the Company has filed or will file with the SEC for more information about the Company and the Offering. Copies of the final prospectus relating to the 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. In addition, copies of the prospectus and the free writing prospectus relating to the Offering, when available, 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 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 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 is the offering price of Pheton Holdings' IPO?

The offering price of Pheton Holdings' IPO is $4.00 per Class A ordinary share.

How many shares are being offered in Pheton Holdings' IPO?

Pheton Holdings is offering 2,250,000 Class A ordinary shares in its IPO.

When will Pheton Holdings start trading on Nasdaq?

Pheton Holdings will start trading on Nasdaq on September 5, 2024, under the ticker symbol 'PTHL'.

What is the total gross proceeds from Pheton Holdings' IPO?

The total gross proceeds from Pheton Holdings' IPO amount to $9 million before deducting underwriting discounts and related expenses.

Who are the underwriters for Pheton Holdings' IPO?

CATHAY SECURITIES and Dominari Securities are the underwriters for Pheton Holdings' IPO.