Skyline Builders Group Holding Limited Announces Underwriters’ Full Exercise of Over-allotment Option

Rhea-AI Summary

Skyline Builders Group Holding (NASDAQ: SKBL), a Hong Kong civil engineering services provider, announced the full exercise of the over-allotment option by its underwriters. The underwriters purchased an additional 225,000 Class A Ordinary Shares at $4.00 per share, generating additional gross proceeds of $900,000.

Following this exercise, the total Offering increased to 1,725,000 Class A Ordinary Shares with total gross proceeds of $6.9 million before deducting underwriting costs. The proceeds will be used to hire additional staff, strengthen market position, acquire machinery, enhance brand awareness, and fund working capital.

The Company's shares began trading on Nasdaq Capital Market on January 23, 2025, under 'SKBL'. Dominari Securities served as the lead underwriter with Revere Securities as co-underwriter.

Positive

• Successfully raised $6.9 million in gross proceeds from IPO including over-allotment
• Full exercise of over-allotment option indicates strong initial demand
• Achieved Nasdaq Capital Market listing

Negative

• Potential shareholder dilution from additional shares issued

Insights

Investment Banking Analyst

The full exercise of the over-allotment option, occurring just 18 days after SKBL's Nasdaq debut, signals robust institutional interest and market confidence in this Hong Kong-based civil engineering firm. The $900,000 additional raise, bringing total proceeds to $6.9 million, provides enhanced financial flexibility at a important growth stage.

The swift exercise of the greenshoe option (industry term for over-allotment) typically indicates strong price support and market stability. This additional capital injection strengthens SKBL's balance sheet and provides a more substantial war chest for their expansion strategy in Hong Kong's $28 billion civil engineering market.

The strategic allocation of funds across operational enhancement, talent acquisition and machinery investment demonstrates a balanced approach to scaling operations. However, investors should note that the $6.9 million raise, while significant for immediate growth initiatives, may require supplementary funding rounds if the company pursues aggressive market expansion or large-scale projects.

The successful completion of both the initial offering and over-allotment suggests the pricing at $4.00 per share effectively balanced market accessibility with capital raising objectives. The full exercise also indicates the underwriters' confidence in maintaining price stability, as they would typically only exercise the option if they believe the market can absorb the additional shares without significant price pressure.

Hong Kong, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Skyline Builders Group Holding Limited (NASDAQ: SKBL) (the “Company”), a civil engineering services provider in Hong Kong, today announced that on February 10, 2025, the underwriter of its previously announced initial public offering (“Offering”) has exercised its over-allotment option in full (the “Over-Allotment Option”) and purchased an additional  225,000Class A Ordinary Shares of the Company at the public offering price of $4.00 per share, resulting in additional gross proceeds of $900,000. After giving effect to the full exercise of the Over-Allotment Option, the total number of Class A Ordinary Shares sold by the Company in the Offering increased to 1,725,000 Class A Ordinary Shares and the gross proceeds increased to $6,900,000, before deducting underwriting discounts and commissions. Proceeds from the Offering will be used to enhance the Company’s capacities in hiring additional staff, strengthen its market position in the civil engineering industry, acquire machinery to enhance its capacity, enhance the Company’s brand, as well as to fund working capital and for other general corporate purposes.

The Class A Ordinary Shares commenced trading on Nasdaq Capital Market on January 23, 2025 under the ticker symbol “SKBL.”

The Offering was conducted on a firm commitment basis. Dominari Securities LLC acted as representative of the underwriters with Revere Securities LLC acted as co-underwriter (collectively, the “Underwriters”) for the Offering. Loeb & Loeb LLP acted as counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as counsel to the Underwriters in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the Securities and Exchange Commission (“SEC”) (File Number: 333-282720) and was declared effective by the SEC on December 31, 2024. The Offering was made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering may be obtained from Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor, New York, NY 10022. In addition, a copy of the prospectus 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 a 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.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the SEC for more complete information about the Company and the Offering. This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company’s securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, 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 Skyline Builders Group Holding Limited

Skyline Builders Group Holding Limited operates as an Approved Public Works Contractor undertaking roads and drainage to its customers in Hong Kong. Its construction activities mainly include public civil engineering works, such as road and drainage works, in Hong Kong. It mostly undertakes civil engineering works in the role of subcontractor, while it is also fully qualified to undertake such works in the capacity of main contractor. The Company’s public sector projects mainly involve infrastructure developments while private sector projects mainly involved residential and commercial developments.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the SEC.

For more information, please contact:

Skyline Builders Group Holding Limited
Investor Relations Department
Email: ir@skylinebuilders.cc 

FAQ

How much did SKBL raise in total from its IPO including over-allotment?

SKBL raised total gross proceeds of $6.9 million, with $900,000 coming from the over-allotment option exercise.

When did SKBL stock begin trading on Nasdaq?

SKBL began trading on the Nasdaq Capital Market on January 23, 2025.

What was the IPO price for SKBL shares?

The public offering price was $4.00 per share.

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

The underwriters purchased an additional 225,000 Class A Ordinary Shares through the over-allotment option.

How will SKBL use the proceeds from its IPO?

SKBL will use the proceeds to hire additional staff, strengthen market position, acquire machinery, enhance brand awareness, and fund working capital and general corporate purposes.