Ryde Announces Closing of $4.5 Million Public Offering

Rhea-AI Summary

Ryde Group (NYSE American: RYDE), a leading technology platform for mobility and quick commerce based in Singapore, has announced the closing of a $4.5 million public offering on September 27, 2024. The offering consisted of 5,300,000 units, each comprising one Class A Ordinary Share and one common warrant to purchase an additional Class A Ordinary Share. The warrants have an exercise price of $0.85 per share, are immediately exercisable, and will expire in five years.

Maxim Group acted as the sole placement agent for this offering. The securities were offered through a registration statement on Form F-1 (File No. 333-282076), which was declared effective by the SEC on September 25, 2024. The final prospectus was filed with the SEC on September 27, 2024.

Positive

• Successful closing of a $4.5 million public offering
• Immediate exercisability of warrants, providing potential for additional capital

Negative

• Potential dilution of existing shareholders due to the issuance of new shares
• Warrants priced at $0.85 per share, which is likely below the current market price

Insights

Financial Analyst

Ryde's $4.5 million public offering is a significant move for a company with a market cap of just over $16 million. This capital raise, representing about 28% of their current market value, provides a substantial cash injection. The offering structure, combining shares with warrants, is designed to attract investors by offering potential upside.

The $0.85 warrant exercise price suggests the company expects share price appreciation, which could provide additional funding if exercised. However, this also indicates potential dilution for existing shareholders. The five-year expiration gives Ryde a long runway to improve its valuation.

Investors should note that this offering significantly increases the share count, potentially impacting earnings per share. The use of proceeds will be important in determining whether this capital raise translates to growth and improved financials for Ryde. Given the company's focus on mobility and quick commerce in Singapore, the funds could potentially accelerate market expansion or technology development.

Market Research Analyst

Ryde's public offering reflects the competitive landscape in the mobility and quick commerce sectors. With giants like Grab and Gojek dominating Southeast Asian markets, Ryde's capital raise suggests a strategic move to bolster its position. The $4.5 million influx could be pivotal for enhancing its technology platform or expanding services.

The timing of this offering is noteworthy, coming amidst global economic uncertainties. It indicates investor appetite for tech-driven mobility solutions, despite market volatility. However, the relatively small offering size might limit Ryde's ability to compete aggressively with larger, well-funded rivals.

Investors should monitor how Ryde deploys this capital to differentiate itself in the market. Key performance indicators to watch include user acquisition costs, platform engagement metrics and market share growth in Singapore and potentially new markets. The success of this offering in driving Ryde's growth trajectory will be important for its long-term viability in a highly competitive industry.

SINGAPORE--(BUSINESS WIRE)-- SINGAPORE, September 27, 2024 – Ryde Group Ltd (NYSE American: RYDE) (“Ryde” or the “Company”), a leading technology platform for mobility and quick commerce headquartered in Singapore, today announced the closing of a public offering of an aggregate of 5,300,000 units (the “Units”), each unit consists of one Class A Ordinary Share, par value $0.0002 per share of Ryde, and one common warrant to purchase one Class A Ordinary Share. The common warrants will have an exercise price of $0.85 per share, are exercisable immediately and will expire five years following the date of issuance.

Gross proceeds from the Offering, before deducting the placement agent’s fees and other offering expenses, are approximately $4.5 million. The closing of the offering has occurred on September 27, 2024, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as sole placement agent in connection with this offering.

The securities described above are being offered pursuant to a registration statement on Form F-1 (File No. 333-282076) (the “Registration Statement”), which was declared effective by the Securities and Exchange Commission (the “SEC”) on September 25, 2024. The offering is being made only by means of a prospectus which is a part of the Registration Statement. The final prospectus relating to this offering was filed with the SEC on September 27, 2024, and copies may be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, at (212) 895-3745.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Ryde Group Ltd

Ryde is a super mobility app founded in Singapore and also the world's FIRST on-demand carpooling app since 2014. As a publicly listed company on the NYSE American, FSE and XSTU, we are reimagining the way people and goods move around. We offer a full suite of services, including carpooling, private hire, taxi, and delivery, but what truly sets us apart is our commitment to empower our private-hire and taxi partners. We take 0% commission, ensuring that more of every hard-earned dollar goes to drivers on our platform. For more information, please visit https://rydesharing.com/ to learn more.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and expectations on the timing and completion of the offering. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the final prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and Ryde Group Ltd specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240927635012/en/

For Media Relations:

Media Team

Ryde Group Ltd

Email: media@rydesharing.com



For Investor Relations:

Investor Relations Team

Ryde Group Ltd

Email: investor@rydesharing.com



Skyline Corporate Communications Group, LLC

Email: info@skylineccg.com

Source: Ryde Group

FAQ

What was the size of Ryde's (RYDE) public offering on September 27, 2024?

Ryde (RYDE) closed a public offering of approximately $4.5 million on September 27, 2024.

How many units were offered in Ryde's (RYDE) public offering?

Ryde (RYDE) offered an aggregate of 5,300,000 units in its public offering.

What does each unit in Ryde's (RYDE) public offering consist of?

Each unit in Ryde's (RYDE) offering consists of one Class A Ordinary Share and one common warrant to purchase one Class A Ordinary Share.

What is the exercise price and expiration of the warrants in Ryde's (RYDE) offering?

The warrants have an exercise price of $0.85 per share, are exercisable immediately, and will expire five years from the date of issuance.

Who acted as the placement agent for Ryde's (RYDE) public offering?

Maxim Group acted as the sole placement agent for Ryde's (RYDE) public offering.