Ruanyun Edai Technology Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Ruanyun Edai Technology, a Chinese AI technology company focused on K-12 education, has announced the pricing of its Initial Public Offering (IPO) of 3,750,000 ordinary shares at $4.00 per share, expecting to raise gross proceeds of approximately $15 million.

The shares will commence trading on Nasdaq Capital Market under the ticker symbol 'RYET' on April 8, 2025. The company has granted underwriters a 45-day option to purchase up to 562,500 additional shares to cover over-allotments.

The net proceeds will be used for: research and development of new products, marketing and customer services, new content creation, cash reserves, and working capital including setting up two additional regional offices. AC Sunshine Securities is serving as the sole book-running manager for this firm commitment offering.

Positive

• Successful IPO listing on Nasdaq Capital Market
• Substantial funding raise of $15 million
• Additional capital access through 45-day over-allotment option
• Clear allocation plan for proceeds targeting growth initiatives
• Expansion plans with two new regional offices

Negative

• Potential shareholder dilution from IPO and possible over-allotment
• Competitive pressure in Chinese education technology sector
• Dependency on successful execution of expansion strategy

Insights

Financial Analyst

Ruanyun Edai's $15 million IPO represents a strategic entry into the US capital markets for this Chinese AI education company. The pricing at $4.00 per share for 3.75 million shares provides essential growth capital that will be deployed across multiple strategic initiatives.

The company's allocation of proceeds reveals its prioritization of product development, marketing expansion, and content creation - the three critical pillars for AI education platforms seeking scale. The establishment of two additional regional offices signals geographic expansion ambitions that could accelerate revenue growth.

While the $15 million raise is relatively modest by US IPO standards, it provides sufficient capital for Ruanyun's stated growth objectives. The over-allotment option could potentially add another $2.25 million if fully exercised, bringing the maximum potential proceeds to $17.25 million.

Notably, the firm commitment underwriting structure (versus best efforts) demonstrates underwriter confidence in the offering. As one of the first Chinese AI education companies to list in the US since recent regulatory shifts, Ruanyun's public reception will be closely watched as a potential bellwether for similar companies considering US listings.

Investors should monitor post-IPO performance, cash burn rate, and the company's ability to execute on its stated objectives for the proceeds, particularly in R&D and marketing initiatives which will directly impact growth trajectories.

Nanchang, China, April 07, 2025 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (“Ruanyun” or the “Company”), a leading artificial intelligence (AI) technology company focused on K-12 education in China, today announced the pricing 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. The Company expects to receive aggregate gross proceeds of approximately $15,000,000, before deducting underwriting discounts and other offering expenses. The Ordinary Shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on Apr. 8, 2025, under the ticker symbol “RYET”. The Offering is expected to close on Apr. 9, 2025, subject to customary closing conditions. In addition, the Company has granted the underwriters an option (the “Over-Allotment Option”), exercisable within 45 days from the closing date of the Offering, 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 net proceeds from the Offering will be used 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 is being conducted on a firm commitment basis. AC Sunshine Securities LLC (“AC Sunshine”) is acting as the sole book-running manager for the Offering. K&L Gates LLP is acting as U.S. securities counsel to the Company, and Hunter Taubman Fischer & Li LLC is acting 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, has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on 3/31/2025. The Offering is being made only by means of a prospectus. Copies of the prospectus related to the Offering may be obtained, when available, 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 relating to the Offering, when available, may also 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 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

When will Ruanyun Edai Technology (RYET) start trading on Nasdaq?

RYET will commence trading on the Nasdaq Capital Market on April 8, 2025.

How much is Ruanyun Edai Technology's IPO price per share?

The IPO is priced at $4.00 per ordinary share.

What is the total size of Ruanyun Edai Technology's IPO offering?

The offering consists of 3,750,000 ordinary shares, with potential additional 562,500 shares through over-allotment option.

How will Ruanyun Edai Technology (RYET) use its IPO proceeds?

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

What is the expected closing date for RYET's IPO?

The IPO is expected to close on April 9, 2025, subject to customary closing conditions.