QMMM Holdings Limited Announces Partial Exercise of the Underwriters' Over-Allotment Option

Rhea-AI Summary

QMMM Holdings (Nasdaq: QMMM), a digital media advertising and virtual technology service provider in Hong Kong, has announced the partial exercise of the underwriters' over-allotment option in its initial public offering (IPO). WallachBeth Capital, , the representative of the underwriters, purchased an additional 56,342 ordinary shares at the IPO price of $4.00 per share. This brings the total gross proceeds of the IPO to approximately $8.83 million, before deducting underwriting discounts and other expenses.

The IPO was conducted through a registration statement on Form F-1, which was declared effective by the SEC on July 1, 2024. A final prospectus was filed on July 22, 2024. WallachBeth Capital, acted as the lead underwriter, with FisherBroyles, LLP and Sichenzia Ross Ference Carmel LLP providing legal counsel.

Positive

• Successfully completed IPO with gross proceeds of approximately $8.83 million
• Underwriters exercised partial over-allotment option, indicating demand for shares
• Listed on Nasdaq under ticker QMMM, potentially increasing visibility and liquidity

Negative

• Gross proceeds reported before deducting underwriting discounts and other expenses, actual net proceeds may be significantly lower

Financial Analyst

The partial exercise of the over-allotment option by QMMM Holdings' underwriters is a mildly positive signal for the company's IPO performance. The additional 56,342 shares sold at $4.00 per share brought the total gross proceeds to approximately $8.83 million. While this indicates some demand beyond the initial offering, it's worth noting that the over-allotment wasn't fully exercised, suggesting moderate rather than overwhelming interest.

For context, over-allotment options typically represent up to 15% of the initial shares offered. The partial exercise here implies that market reception was lukewarm but not cold. Investors should consider that:

• The additional capital can strengthen QMMM's balance sheet
• The moderate uptake may reflect cautious sentiment about the company's prospects in the competitive digital media and virtual technology sectors
• IPO proceeds will be important for QMMM's growth strategies in a rapidly evolving industry

Tech Expert

QMMM Holdings' position as a digital media advertising and virtual avatar & virtual apparel technology service provider places it at the intersection of several emerging tech trends. The successful IPO, albeit with a partial over-allotment exercise, provides the company with capital to potentially advance its technologies in:

• AI-driven digital advertising
• Virtual reality (VR) and augmented reality (AR) applications
• Digital fashion and virtual clothing marketplaces

However, investors should be aware that these sectors are highly competitive and fast-evolving. QMMM's ability to innovate and capture market share will be crucial. The moderate IPO performance might reflect market uncertainty about the company's technological edge or scalability potential in these cutting-edge fields.

HONG KONG, Aug. 8, 2024 /PRNewswire/ -- QMMM Holdings Limited (Nasdaq: QMMM) (the "Company" or "QMMM Holdings"), a digital media advertising, virtual avatar & virtual apparel technology service provider in Hong Kong, today announced that WallachBeth Capital, LLC, as representative of the underwriters of the Company's firm commitment initial public offering ("IPO"), has partially exercised its over-allotment option to purchase an additional 56,342 ordinary shares of the Company at the IPO price of $4.00 per share. The gross proceeds of the Company's IPO, including the proceeds from the sale of the over-allotment shares, totaled approximately $8.83 million, before deducting underwriting discounts and other related expenses.

WallachBeth Capital, LLC acted as lead underwriter of the IPO. FisherBroyles, LLP acted as U.S. securities counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as U.S. counsel to WallachBeth Capital, LLC.

A registration statement on Form F-1 relating to the offering has been filed with the U.S. Securities and Exchange Commission ("SEC") (File Number: 333-274887) and was declared effective by the SEC on July 1, 2024. The offering of the ordinary shares was made only by means of a final prospectus. A final prospectus relating to the offering was filed with the SEC on July 22, 2024, which may be obtained from WallachBeth Capital, LLC, Harborside Financial Center Plaza 5, 185 Hudson Street, Ste 1410, Jersey City, NJ 07311, by email to cap-mkts@wallachbeth.com, or by calling +1 646.237.8585. In addition, a copy of the final prospectus relating to the IPO may be obtained via the SEC's website at www.sec.gov. 

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 QMMM Holdings Limited

QMMM Holdings is an award-winning digital advertising and marketing production services company. Through its operating subsidiaries ManyMany Creations Limited and Quantum Matrix Limited in Hong Kong, the Company has used interactive design, animation, art-tech and virtual technologies in over 500 commercial campaigns. The Company has worked with large domestic and international banks, real estate developers, world famous amusement park, top international athletic apparel and footwear brands and luxury cosmetic products and international brands for their advertising and creation work in Hong Kong. Standing prominently in Hong Kong for over 18 years in the industry, with top creativity, premium account servicing, and ever-advancing tech R&D, the Company continues to be one of the top premium choices for enterprises and multinational enterprises looking for large scale content-heavy and tech-integrated campaigns. The clients of the Company include local and international banks, real-estate developers, luxury brands, high fashion houses, and theme parks.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. 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. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" 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 SEC, which are available for review at www.sec.gov. 

For more information, please contact:

QMMM Holdings Limited
Phone: +852 3549 6889
Email: info@qmmm.io 

 

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SOURCE QMMM HOLDINGS LIMITED

FAQ

What was the IPO price for QMMM Holdings (QMMM) shares?

The IPO price for QMMM Holdings (QMMM) shares was $4.00 per share.

How many additional shares were purchased through the over-allotment option for QMMM?

The underwriters purchased an additional 56,342 ordinary shares of QMMM Holdings through the partial exercise of the over-allotment option.

What were the total gross proceeds from QMMM Holdings 's IPO?

The total gross proceeds from QMMM Holdings 's IPO, including the over-allotment shares, were approximately $8.83 million.

When was QMMM Holdings 's IPO registration statement declared effective by the SEC?

QMMM Holdings 's IPO registration statement was declared effective by the SEC on July 1, 2024.