Ryde Announces Pricing 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 pricing of a public offering. The offering consists of 5,300,000 units, each comprising one Class A Ordinary Share and one warrant exercisable into one Ordinary Share. The units are priced at $0.85 each, aiming to raise gross proceeds of approximately $4.5 million.

The warrants will be immediately exercisable at an exercise price of $0.85 and will expire five years from the date of issuance. Maxim Group is acting as the sole placement agent for the offering, which is expected to close on September 27, 2024, subject to customary closing conditions. A registration statement on Form F-1 related to the offering has been filed with the SEC and was declared effective on September 25, 2024.

Positive

• Successful pricing of public offering to raise $4.5 million
• Immediate exercisability of warrants at $0.85 per share
• Potential for additional capital through warrant exercise

Negative

• Potential dilution of existing shareholders' ownership
• Offering price of $0.85 per unit may indicate low valuation

Insights

Financial Analyst

The pricing of Ryde's $4.5 million public offering is a significant development for this small-cap company. With a market cap of just $25.5 million, this capital raise represents about 17.6% of the company's current value. The offering structure, combining shares and warrants, is designed to attract investors but may lead to dilution.

The $0.85 unit price, which includes both a share and a warrant, suggests the company is pricing its offering aggressively to ensure full subscription. This could indicate some financial pressure or a strategic move to fund growth initiatives. The immediate exercisability of the warrants at the offering price might create near-term selling pressure if investors choose to cash out quickly.

Investors should note that this capital injection, while dilutive, could provide Ryde with necessary funds to expand its technology platform in the competitive mobility and quick commerce sectors. However, the company's ability to effectively utilize this capital to generate returns will be important for long-term value creation.

Market Research Analyst

Ryde's public offering comes at a time when the mobility and quick commerce sectors are experiencing rapid evolution. The company's focus on these high-growth areas could position it well, but it's entering a crowded field with well-funded competitors.

The $4.5 million raise, while modest, could be strategic for Ryde's expansion in Southeast Asia, where the mobility market is projected to reach $42 billion by 2025. However, the company will need to demonstrate clear differentiation and efficient capital allocation to stand out.

The warrant structure, with a 100% ratio and five-year expiration, provides a long-term upside potential for investors but also signals the company's need for continued support. This offering structure is often used by smaller companies to sweeten the deal for investors taking on higher risk. Ryde's success will hinge on its ability to capture market share and achieve profitability before requiring additional funding rounds.

SINGAPORE--(BUSINESS WIRE)-- 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 pricing of a public offering (the “Offering”) of 5,300,000 units, with each unit consisting of one Class A Ordinary Share (the “Ordinary Shares”) and one warrant each exercisable into one Ordinary Share, for gross proceeds of approximately $4.5 million. Each unit was sold at an effective public offering price of $0.85. The warrants will be immediately exercisable at an exercise price of $0.85 and will expire five years from the date of issuance.

Maxim Group LLC is acting as the sole placement agent for the offering. The offering is expected to close on September 27, 2024, subject to customary closing conditions.

A registration statement on Form F-1, as amended (File No. 333-282076) relating to the Offering, has been filed with the Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on September 25, 2024. The Offering is being made only by means of a prospectus, forming part of the registration statement. Copies of the final prospectus related to the Offering may be obtained, when available, from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, New York 10022, by email at syndicate@maximgrp.com, or by telephone at +1 (212) 895-3500. In addition, a copy of the final prospectus, when available, relating to the Offering 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 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 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 the completion of the public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the preliminary 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/20240926882527/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 is the size and structure of Ryde's (RYDE) public offering?

Ryde's public offering consists of 5,300,000 units, with each unit comprising one Class A Ordinary Share and one warrant exercisable into one Ordinary Share. The offering aims to raise gross proceeds of approximately $4.5 million.

What is the pricing of Ryde's (RYDE) public offering units?

Each unit in Ryde's public offering is priced at $0.85, which includes one Class A Ordinary Share and one warrant.

When is the expected closing date for Ryde's (RYDE) public offering?

The public offering for Ryde (RYDE) is expected to close on September 27, 2024, subject to customary closing conditions.

What are the terms of the warrants in Ryde's (RYDE) public offering?

The warrants in Ryde's public offering will be immediately exercisable at an exercise price of $0.85 and will expire five years from the date of issuance.