Roma Green Finance Limited Announces Pricing of $12,300,000 Public Offering
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Insights
The announcement by Roma Green Finance Limited regarding the pricing of its public offering is a significant event for the company and its stakeholders. The offering price of $4.00 per share for roughly 2.45 million shares will infuse approximately $9.8 million into the company, exclusive of underwriting discounts and other expenses. This capital influx is crucial for the company's strategic initiatives, which may include expansion, research and development, or debt reduction. The capital raised could also impact the company's balance sheet positively, potentially improving financial ratios such as the debt-to-equity ratio, which is often scrutinized by investors and analysts alike.
It is important to note that the company will not benefit from the additional $2.5 million raised by the selling shareholder. This aspect of the offering indicates that there could be a dilutive effect on existing shareholders' equity, as the total share count increases without corresponding proceeds flowing to the company. The market's reaction to the news will be telling, as it will reflect investor sentiment regarding the company's valuation and the perceived use of the raised capital.
The entry of Roma Green Finance Limited's ordinary shares into the Nasdaq Capital Market under the symbol 'ROMA' is a strategic move that could potentially increase the company's visibility among investors, especially those with an interest in green finance. The Nasdaq Capital Market is known for listing growth-oriented companies and a successful listing could enhance Roma Green's reputation and credibility. However, the success of this offering and subsequent stock performance will largely depend on the company's ability to articulate its growth story and future profitability to investors.
Additionally, the pricing of the shares at $4.00 is a critical factor that will dictate investor interest. This price point must be justified by the company's current financial health and future growth prospects. If the market perceives the price as fair or undervalued, it could lead to a positive reception of the stock. Conversely, if investors deem the price to be overvalued, it could result in a lukewarm response or downward pressure on the stock post-listing.
The capital market activities of firms like Roma Green Finance Limited are indicative of broader economic trends. A successful public offering can reflect investor confidence in the market, particularly in the green finance sector. The decision to go public and the ability to raise capital are often seen as signals of economic growth and investor appetite for risk. Conversely, if the offering were to underperform, it could suggest market saturation or investor caution, potentially leading to a reevaluation of market conditions.
The timing of the offering also plays a crucial role. In an economy with low interest rates, companies might find it more advantageous to raise capital through equity rather than debt. However, in a higher interest rate environment, the cost of capital increases and the appeal of fixed-income investments might overshadow the equity market, affecting the demand for a company's shares. The performance of Roma Green's offering could therefore serve as a barometer for the current economic climate and the health of the green finance sector.
HONG KONG, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Roma Green Finance Limited (Nasdaq: ROMA) (the “Company”), a Cayman Islands exempted company that is based in Hong Kong, today announced the pricing of a public offering of 2,449,943 of its ordinary shares at a public offering price of
The offering has been conducted on a firm commitment basis. Spartan Capital Securities, LLC (“Spartan”), acted as sole book-running manager for the offering.
The Company expects to use the net proceeds from this offering to (i) strengthen and expand its green and sustainable finance and climate risk advisory business in Hong Kong and Singapore and to expand market presence in other international markets; (ii) to enhance its industry positioning and strengthen its business development; (iii) to strengthen its operational efficiency; (iv) for strategic acquisition; (v) for establishing a formal ESG academy, and (vi) for working capital and other general corporate purposes.
A registration statement on Form F-1 relating to the offering, as amended, was filed with the Securities and Exchange Commission (the “SEC”) (File Number: 333-272555) and was declared effective by the SEC on December 29, 2023. The offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the offering, when available, may be obtained from Spartan Capital Securities, LLC; Attn: Kim Monchik, 45 Broadway, 19th Floor, New York, NY 10006 or via email at investmentbanking@spartancapital.com or telephone at (212) 293-0123. In addition, a copy of the prospectus relating to the offering 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 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 any of the Company’s securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company’s securities in any state or jurisdiction in which such offers, solicitations or sales would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Roma Green Finance Limited
The Company is based in Hong Kong and is principally engaged in the provision of ESG, corporate governance and risk management as well as sustainability and climate change related advisory services. Its service offering mainly comprise the following: (i) Sustainability Program Development, (ii) ESG Reporting, (iii) Corporate Governance and Risk Management, (iv) Climate Change Strategies and Solutions, (v) Environmental Audit, (vi) ESG Rating Support and Shareholder Communication: The Company helps clients to review and improve their ESG / sustainability ratings with Bloomberg and other rating agencies, and (vii) Education and Training.
Additional information about the Company is available at http://www.romaesg.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations. These forward-looking statements include, without limitation, references to the Company’s expectations regarding the closing of the public offering and its anticipated use of net proceeds from the offering. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions related to the public offering or factors that result in changes to the Company's anticipated use of proceeds. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company’s Registration Statement on Form F-1 related to the public offering (SEC File No. 333-272555). Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Contact:
Roma Green Finance Limited
Tel: +852 2529 6878
Email: ir@roma-international.com
Mr. Rene Vanguestaine
Christensen
Tel: + 852 6686 1376
Email: rene.vanguestaine@christensencomms.com
Ms. Linda Bergkamp
Christensen
Tel: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
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