Samfine Creation Holdings Group Limited Announced Full Exercise of Underwriter’s Over-Allotment Option

Rhea-AI Summary

Samfine Creation Holdings Group (Nasdaq: SFHG) announced the full exercise of the underwriter's over-allotment option for an additional 300,000 ordinary shares at $4.00 per share, generating extra gross proceeds of $1.2 million. The total offering now comprises 2,300,000 shares with gross proceeds of $9.2 million. The company began trading on Nasdaq Capital Market on October 15, 2024. Proceeds will be used to strengthen printing operations in Hong Kong, expand into international markets (particularly the U.S.), purchase machinery, upgrade production equipment, and provide working capital.

Positive

• Successfully raised $9.2 million in gross proceeds through IPO
• Full exercise of over-allotment option indicates strong market demand
• Nasdaq Capital Market listing achieved
• Clear expansion strategy with focus on U.S. market
• Plans for automation and equipment upgrades to improve efficiency

Negative

• Potential shareholder dilution from additional share issuance

Insights

Financial Analyst

The full exercise of the over-allotment option demonstrates strong investor demand for SFHG's IPO. The additional $1.2 million brings total gross proceeds to $9.2 million, strengthening the company's financial position. The funds will be strategically allocated to expand their printing business internationally, particularly in the U.S. market and enhance automation through equipment upgrades.

The firm commitment underwriting structure and involvement of multiple underwriters (Cathay Securities, Revere Securities and Dominari Securities) adds credibility to the offering. For a company with a market cap of $203.5 million, this capital raise represents approximately 4.5% of their market value, providing meaningful working capital without excessive dilution to existing shareholders.

Hong Kong, Oct. 25, 2024 (GLOBE NEWSWIRE) -- Samfine Creation Holdings Group Limited (Nasdaq: SFHG) (the “Company”), a one-stop printing service provider, today announced that the underwriters of its previously announced initial public offering (the “Offering”) have exercised their over-allotment option in full to purchase an additional 300,000 ordinary shares at the public offering price of $4.00 per share, resulting in additional gross proceeds of $1.2 million. After giving effect to the full exercise of the over-allotment option, the total number of ordinary shares sold by the Company in the Offering increased to 2,300,000 ordinary shares and the gross proceeds increased to $9.2 million, before deducting underwriting discounts and other related expenses. The option closing date was October 25, 2024. The ordinary shares began trading on the Nasdaq Capital Market on October 15, 2024 under the symbol “SFHG.”

The Company intends to use the net proceeds for strengthening of its operating subsidiaries’ printing business in Hong Kong and expanding market presence in other international markets in particular the U.S., for purchasing machinery and improving and upgrading its operating subsidiaries’ production equipment to enhance level of automation, and for additional working capital and other general corporate purposes.

The Offering was conducted on a firm commitment basis. Cathay Securities, Inc. acted as the representative of the underwriters, and Revere Securities LLC and Dominari Securities LLC acted as co-underwriters (collectively, the “Underwriters”) for the Offering. Hunter Taubman Fischer & Li LLC acted as U.S. legal counsel to the Company and Ortoli Rosenstadt LLP acted as legal counsel to the Underwriters for the Offering.

A registration statement on Form F-1 relating to the Offering has been filed with the U.S. Securities and Exchange Commission (“SEC”) (File Number: 333-275498) and was declared effective by the SEC on September 30, 2024. The Offering was made only by means of a prospectus. A final prospectus relating to the Offering was filed with the SEC on October 15, 2024 and is available on the SEC’s website at www.sec.gov. Alternatively, electronic copies of the final prospectus relating to this Offering may be obtained from Cathay Securities, Inc. by email at service@cathaysecurities.com, by standard mail to Cathay Securities, Inc., 40 Wall Street, Suite 3600, New York, NY 10005, or by telephone at +1 (855) 939-3888; or from Revere Securities LLC by email at contact@reveresecurities.com, by standard mail to Revere Securities LLC, 560 Lexington Avenue, 16th Floor, New York, NY 10022, or by telephone at +1 (212) 688-2350. 

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 any of the Company’s securities, nor shall there be any offer, solicitation or sale of any of the Company’s 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 such state or jurisdiction.

About Samfine Creation Holdings Group Limited

Samfine Creation Holdings Group Limited is an established one-stop printing service provider which principally provides printing services in Hong Kong and the PRC. With over 20 years of experience in the printing industry, its operating subsidiaries offer a wide range of printed products such as book products and novelty and packaging products. Its operating subsidiaries’ customers principally comprise of book traders located in Hong Kong whose clients are located around the world, mainly in the U.S. and Europe.

For more information, visit the Company’s website at www.1398.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

Contacts

Samfine Creation Holdings Group Limited Investor Relations Contact:

Phone: +852 3589 1500
Email: 888@1398.cn

FAQ

How much did Samfine Creation Holdings (SFHG) raise in their IPO including over-allotment?

Samfine Creation Holdings raised $9.2 million in gross proceeds, including $1.2 million from the full exercise of the over-allotment option at $4.00 per share.

When did SFHG begin trading on the Nasdaq Capital Market?

SFHG began trading on the Nasdaq Capital Market on October 15, 2024.

How will SFHG use the IPO proceeds?

SFHG will use the proceeds to strengthen printing operations in Hong Kong, expand into international markets (especially the U.S.), purchase machinery, upgrade production equipment, and for working capital.

How many additional shares were sold through SFHG's over-allotment option?

The underwriters purchased an additional 300,000 ordinary shares through the full exercise of the over-allotment option.