Star Fashion Culture Holdings Limited Announces Pricing of $8.60 Million Initial Public Offering

Rhea-AI Summary

Star Fashion Culture Holdings has announced the pricing of its initial public offering (IPO) of 2,150,000 Class A Ordinary Shares at $4.00 per share. The company expects to raise $8.60 million in gross proceeds, before deducting underwriting discounts and commissions. Trading is set to begin on the Nasdaq Capital Market under the ticker symbol 'STFS' on October 11, 2024. The offering is expected to close on October 15, 2024, subject to customary conditions.

Star Fashion has granted underwriters a 30-day option to purchase up to an additional 322,500 shares. Cathay Securities is the representative for the offering, with WestPark Capital as an underwriter. The IPO is being conducted pursuant to the company's Registration Statement on Form F-1, which was declared effective by the SEC on September 30, 2024.

Positive

• Initial public offering (IPO) priced at $4.00 per share
• Expected gross proceeds of $8.60 million before deductions
• Listing on Nasdaq Capital Market under ticker 'STFS'
• 30-day option granted to underwriters for additional 322,500 shares

Negative

• Potential shareholder dilution due to new share issuance
• Underwriting discounts and commissions will reduce net proceeds

Insights

Financial Analyst

The IPO pricing of Star Fashion Culture Holdings marks a significant milestone for the company. Priced at $4.00 per share, the offering of 2,150,000 Class A Ordinary Shares is set to raise $8.60 million in gross proceeds, excluding the potential over-allotment. This capital injection will likely provide the company with resources for expansion and operational improvements.

The listing on the Nasdaq Capital Market under the ticker "STFS" enhances the company's visibility and access to capital markets. However, investors should note that as a newly public company, Star Fashion may face challenges in meeting market expectations and regulatory requirements.

The involvement of reputable underwriters like Cathay Securities and WestPark Capital lends credibility to the offering. Yet, the relatively small size of the IPO ($8.60 million) suggests the company is still in its growth phase and may need to prove its business model to attract larger institutional investors.

Potential investors should carefully review the prospectus for detailed financial information and risk factors before making investment decisions. The company's performance post-IPO will be important in determining its long-term market position and investor confidence.

Xiamen, China, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Star Fashion Culture Holdings Limited (“Star Fashion” or the “Company”) today announced the pricing on October 10, 2024 of its initial public offering of an aggregate of 2,150,000 shares of its Class A Ordinary Shares (“the Offering”). The Offering was priced at $4.00 per share.

In addition, the Company has granted the Underwriters a 30-day option to purchase up to an additional 322,500 shares of its Class A Ordinary Shares at the initial public offering price (“the Over-allotment”), less underwriting discounts and commissions.

Assuming that the Over-allotment is not exercised, the gross proceeds to Star Fashion from the Offering, before deducting underwriting discounts and commissions and estimated offering expenses payable by Star Fashion, is expected to be $8.60 million.

The shares are expected to begin trading on the Nasdaq Capital Market under the ticker symbol “STFS” on October 11, 2024. The Offering is expected to close on October 15, 2024, subject to customary closing conditions.

Cathay Securities, Inc. (“Cathay”) is the representative for the offering, and  WestPark Capital, Inc. (“Westpark”） is an underwriter for the offering.  Loeb & Loeb LLP, Jingtian & Gongcheng and Ogier are acting as U.S., China, and Cayman Islands legal counsels to the Company, respectively, and Haneberg Hurlbert PLC is acting as U.S. legal counsel to Cathay for the Offering.

The Offering and resale registration statement is being conducted pursuant to the Company’s Registration Statement on Form F-1 (File No. 333-280198), as amended, which was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on September 30, 2024. The Offering is being made only by means of a prospectus. 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. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov.  Alternatively, electronic copies of the prospectus relating to the Offering may be obtained from:

Cathay Securities, Inc.
40 Wall Street
Suite 3600
New York, NY 10005
(855) 939-3888
service@cathaysecurities.com

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 has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and no sale of these securities may be made 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 other jurisdiction.

FORWARD-LOOKING STATEMENTS

Certain statements contained 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 closing dates. 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. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and Star Fashion Culture Holdings Limited 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.

About Star Fashion Culture Holdings Limited

Star Fashion Culture Holdings Limited  (NASDAQ:STFS ) is a content marketing solutions services provider with a mission to offer high-quality diversified services. We offer services focusing on (i) marketing campaign planning and execution; (ii) offline advertising services; and (iii) online precision marketing services. The company assists customers in enhancing the effectiveness of their marketing activities and the value of their brand and products through our variety of services offered.

Contacts

Star Fashion Culture holdings Limited  Investor Relations Contact:

12F, No.611, Sishui Road
Huli District,
Xiamen
People’s Republic of China
Tel: +86 13063138565
Email: hira@xmxing-ji.com

FAQ

What is the IPO price for Star Fashion Culture Holdings (STFS)?

Star Fashion Culture Holdings (STFS) has priced its initial public offering at $4.00 per share.

How many shares is Star Fashion Culture Holdings (STFS) offering in its IPO?

Star Fashion Culture Holdings (STFS) is offering 2,150,000 Class A Ordinary Shares in its initial public offering.

When will Star Fashion Culture Holdings (STFS) begin trading on the Nasdaq?

Star Fashion Culture Holdings (STFS) is expected to begin trading on the Nasdaq Capital Market on October 11, 2024.

What are the expected gross proceeds from Star Fashion Culture Holdings 's (STFS) IPO?

Star Fashion Culture Holdings (STFS) expects to raise $8.60 million in gross proceeds from its IPO, before deducting underwriting discounts and commissions.