Uni-Fuels Holdings Limited Announces Pricing of Its Initial Public Offering

Rhea-AI Summary

Uni-Fuels Holdings (NASDAQ: UFG), a Singapore-based marine fuel solutions provider, has announced the pricing of its initial public offering of 2,100,000 Class A Ordinary Shares at $4.00 per share, raising gross proceeds of $8.4 million. Trading is set to commence on the Nasdaq Capital Market under symbol 'UFG' on January 14, 2025.

The underwriters have a 45-day option to purchase up to 315,000 additional shares. The offering, conducted on a firm commitment basis with R. F. Lafferty & Co. as sole book-runner, is expected to close on January 15, 2025. Proceeds will be used for scaling reselling activities, expanding market presence, strengthening workforce, and general corporate purposes.

Positive

• Successfully completed IPO raising $8.4 million in gross proceeds
• Secured listing on Nasdaq Capital Market
• Potential for additional $1.26 million through underwriter's option

Negative

• Relatively small IPO size indicating initial capital raise
• Dilution of existing shareholders through new share issuance

Insights

IPO Analyst

The IPO pricing of Uni-Fuels Holdings reveals a modest $8.4 million raise through the offering of 2.1 million Class A Ordinary Shares at $4.00 per share. This relatively small offering size suggests a micro-cap entry into the public markets, which could present both opportunities and challenges. The company's focus on marine fuel solutions positions it in a stable but competitive sector.

The use of proceeds indicates a clear growth strategy focused on market expansion and operational scaling. However, the small raise may limit the company's ability to execute significant expansion plans in the capital-intensive marine fuel industry. With R. F. Lafferty as the sole book-runner, this appears to be a smaller-scale offering targeting retail and smaller institutional investors.

The additional 315,000 share overallotment option (representing 15% of the base offering) provides some flexibility for increased capital raising if market demand proves strong. The firm commitment underwriting structure offers more certainty compared to a best-efforts basis, though the modest size suggests institutional interest during the book-building process.

Maritime Industry Analyst

From a maritime sector perspective, Uni-Fuels' market entry comes at an interesting time when the shipping industry is navigating significant changes in fuel regulations and environmental requirements. The Singapore headquarters is strategically valuable, given it's the world's largest bunkering port. However, the relatively small capital raise may challenge the company's ability to compete effectively with larger, established players in the marine fuel supply chain.

The focus on scaling reselling activities suggests a asset-light business model, which could be advantageous in terms of capital efficiency but may face margin pressure in a competitive market. The planned geographical expansion will need careful execution given the complex regulatory landscape of international maritime fuel trading and the working capital requirements typical in this industry.

SINGAPORE, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Uni-Fuels Holdings Limited (NASDAQ: UFG) (“Uni-Fuels” or the “Company”), a global provider of marine fuel solutions for shipping companies headquartered in Singapore, announced today the pricing of its underwritten initial public offering (the “Offering”) of 2,100,000 Class A Ordinary Shares at a public offering price of $4.00 per share, for total gross proceeds of $8.4 million to the Company, before underwriting discounts and commissions. All of the Class A Ordinary Shares are being offered by Uni-Fuels. The Class A Ordinary Shares are expected to begin trading on the Nasdaq Capital Market under the ticker symbol “UFG” on January 14, 2025. The Offering is expected to close on January 15, 2025, subject to satisfaction of customary closing conditions.

The Company has granted the Underwriters an option to purchase up to 315,000 additional Class A Ordinary Shares within 45 days of the effective date of the Company’s registration statement in relation to the Offering.

Uni-Fuels intends to use the proceeds from the Offering for scaling up its reselling activities to gain market share from existing and new markets; for strengthening its workforce and expanding its market presence in new geographical locations; and cash reserve and general corporate purposes.

The Offering was conducted on a firm commitment basis. R. F. Lafferty & Co., Inc. is acting as the sole book-running manager for the Offering.

A registration statement on Form F-1 relating to the shares being sold in the Offering was initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 28, 2024; and was declared effective by the SEC on January 10, 2025. The Offering is being made only by means of a prospectus. A copy of the final prospectus relating to the Offering, when available, may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov, or alternatively, from: R. F. Lafferty & Co., Inc., 40 Wall Street, 27th Floor, New York, NY 10005; (212) 293-9090.

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.

About Uni-Fuels Holdings Limited

Uni-Fuels is a fast-growing global provider of marine fuel solutions, helping shipping companies optimize fuel procurement across all markets and time zones. Founded in 2021, Uni-Fuels has evolved from modest beginnings into a dynamic, forward-thinking company. Backed by a passionate team and a growing presence across multiple locations, it has forged trusted partnerships with customers, supporting them in achieving their operational objectives with confidence, from shore to shore.

For more information, visit www.uni-fuels.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the completion and timing of closing of the Offering and the intended use of the proceeds. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Uni-Fuels’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by 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.

Contact Information

For Investor Relations:

Uni-Fuels Holdings Ltd
Email: investors@uni-fuels.com

Skyline Corporate Communications Group, LLC
Email: info@skylineccg.com

FAQ

What is the IPO price of Uni-Fuels (UFG) shares?

Uni-Fuels (UFG) priced its IPO at $4.00 per Class A Ordinary Share.

How many shares did Uni-Fuels (UFG) offer in its IPO?

Uni-Fuels offered 2,100,000 Class A Ordinary Shares in its initial public offering.

When will UFG shares begin trading on Nasdaq?

UFG shares are expected to begin trading on the Nasdaq Capital Market on January 14, 2025.

How much capital did Uni-Fuels (UFG) raise in its IPO?

Uni-Fuels raised $8.4 million in gross proceeds from its IPO before underwriting discounts and commissions.

What will Uni-Fuels (UFG) use the IPO proceeds for?

UFG will use the proceeds for scaling reselling activities, expanding market presence, strengthening workforce, and general corporate purposes.

Who is the underwriter for Uni-Fuels (UFG) IPO?

R. F. Lafferty & Co., Inc. is acting as the sole book-running manager for the UFG IPO.