Ruanyun Edai Technology Inc. Announces Closing of Initial Public Offering

Rhea-AI Summary

Ruanyun Edai Technology, a leading AI-powered education technology company in China, has successfully completed its Initial Public Offering (IPO) on the Nasdaq Capital Market under the symbol RYET. The company offered 3,750,000 ordinary shares at $4.00 per share, raising approximately $15 million in gross proceeds.

The IPO commenced trading on April 8, 2025, with AC Sunshine Securities acting as the sole book-running manager. Ruanyun has granted underwriters a 45-day option to purchase up to 562,500 additional shares to cover over-allotments.

The net proceeds will be allocated to:

• Research and development of new products and services
• Marketing and customer services
• New content creation
• Cash reserves
• Working capital and general corporate purposes, including establishing two additional regional offices

Positive

• Successfully raised $15 million through IPO
• Achieved Nasdaq Capital Market listing
• Strategic allocation of funds for growth initiatives
• Expansion plans include two new regional offices

Negative

• Potential shareholder dilution from IPO
• Additional dilution risk from 562,500 share over-allotment option

Insights

Financial Analyst

Ruanyun Edai's successful IPO represents a significant milestone for this Chinese AI education technology company, raising $15 million in gross proceeds through the issuance of 3.75 million shares at $4.00 each. The market has responded positively in initial trading, with the share price currently at $4.51, representing a 12.75% premium to the IPO price.

The offering structure includes a standard 45-day over-allotment option for underwriters to purchase up to an additional 562,500 shares, potentially adding another $2.25 million to the capital raise if fully exercised. This firm commitment IPO (versus a less certain best-efforts offering) demonstrates underwriter confidence in the placement.

The company has outlined a strategic allocation plan for the proceeds, prioritizing R&D, marketing initiatives, content creation, cash reserves, and expansion via two new regional offices. This balanced approach suggests a focus on both product development and market expansion within China.

While $15 million represents a relatively modest IPO by US standards, it provides Ruanyun with public market access, enhanced visibility, and a capital foundation to execute its growth initiatives in China's competitive edtech market. The Nasdaq listing also gives global investors direct access to China's education technology sector through a US-listed entity.

Nanchang, China, April 09, 2025 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (“Ruanyun” or the “Company”), a leading AI-powered education technology company in China, today announced the successful closing of its initial public offering (the “Offering”) of 3,750,000 ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share, for aggregate gross proceeds of approximately $15,000,000, before deducting underwriting discounts and other offering expenses. The Ordinary Shares commenced trading on the Nasdaq Capital Market on April 8, 2025 under the ticker symbol “RYET”.

In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 562,500 Ordinary Shares at the public offering price, less underwriting discounts, to cover over-allotments, if any.

The Company intends to use the net proceeds from the Offering for (i) research and development of new products and services; (ii) marketing and customer services; (iii) new content creation; (iv) cash reserves; and (v) working capital and general corporate purposes, including, without limitation, costs to set up two additional regional offices.

The Offering was conducted on a firm commitment basis. AC Sunshine Securities LLC (“AC Sunshine”) acted as the sole book-running manager for the Offering. K&L Gates LLP acted as U.S. securities counsel to the Company, and Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to AC Sunshine in connection with the Offering.

A registration statement on Form F-1 (File No. 333-281857) relating to the Offering, as amended, was filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on March 31, 2025. The Offering was made only by means of a prospectus. Copies of the final prospectus related to the Offering may be obtained from AC Sunshine Securities LLC by standard mail at 200 E. Robinson Street, Suite 295, Orlando, FL 32801, via email at prospectus@acsunshine.com, or by telephone at +1 (689) 689-9686. Additionally, a copy of the final prospectus may also be obtained from 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 has been prepared for informational purposes only and 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 Ruanyun Edai Technology Inc.

Ruanyun Edai Technology Inc. is an innovative AI-driven education technology company dedicated to transforming the K-12 education landscape in China. By leveraging proprietary AI-powered solutions, the Company provides intelligent learning tools, assessment platforms, and adaptive learning systems that enhance academic performance and streamline educational processes. Committed to modernizing education, the Company empowers schools, teachers, and students with cutting-edge teaching, learning, and evaluation tools through the integration of AI and the internet, fostering a more efficient and effective learning model.

For more information, please visit: http://www.ruanyun.net/, https://investors.ruanyun.net/.

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Investor Relations
WFS Investor Relations Inc.
Janice Wang
Managing Partner
Email: jwang@wealthfsllc.com
Tel: +1 628 283 9214 I +86-1381-176-8559

FAQ

How much did Ruanyun Edai Technology (RYET) raise in its IPO?

Ruanyun raised approximately $15 million in gross proceeds through its IPO, offering 3,750,000 ordinary shares at $4.00 per share.

What is the over-allotment option for RYET's IPO?

Underwriters have a 45-day option to purchase up to 562,500 additional ordinary shares at the public offering price to cover over-allotments.

How will RYET use the IPO proceeds?

Proceeds will fund R&D, marketing, content creation, cash reserves, working capital, and establishing two regional offices.

When did RYET stock begin trading on Nasdaq?

RYET shares commenced trading on the Nasdaq Capital Market on April 8, 2025.

Who managed Ruanyun Edai Technology's IPO?

AC Sunshine Securities acted as the sole book-running manager for the IPO.