Uni-Fuels Holdings Limited Announces Underwriters’ Full Exercise of Over-allotment Option

Rhea-AI Summary

Uni-Fuels Holdings (NASDAQ: UFG) announced that underwriters have fully exercised their over-allotment option, purchasing an additional 315,000 Class A Ordinary Shares at $4.00 per share, generating extra gross proceeds of $1.26 million. The total offering now comprises 2,415,000 shares with gross proceeds of $9.66 million before deducting underwriting costs.

The company's shares began trading on Nasdaq Capital Market on January 14, 2025. The proceeds will be used for scaling up reselling activities, strengthening workforce, expanding market presence in new locations, and general corporate purposes. R. F. Lafferty & Co., Inc. served as the sole book-running manager for this firm commitment offering.

Positive

• Successfully raised additional $1.26 million through full exercise of over-allotment option
• Total gross proceeds increased to $9.66 million
• Recent successful listing on Nasdaq Capital Market

Negative

• Potential dilution of existing shareholders due to additional share issuance

Insights

Investment Banking Analyst

The full exercise of the over-allotment option just weeks after Uni-Fuels' IPO represents a significant vote of confidence in the company's prospects. The swift execution at $4.00 per share suggests robust institutional demand and successful price discovery in the initial offering. The additional $1.26 million from 315,000 shares brings total proceeds to $9.66 million, providing enhanced financial flexibility for the company's growth initiatives.

The firm commitment structure of the offering is particularly noteworthy, as it indicates the underwriter's strong conviction in the deal's success, having assumed full financial risk by purchasing all shares outright. This structure typically results in more stable post-IPO trading compared to best-efforts offerings.

The strategic allocation of proceeds focuses on three key areas: market share expansion, geographical diversification and working capital reserves. This balanced approach addresses both aggressive growth objectives and prudent financial management. The timing of the listing on Nasdaq Capital Market positions Uni-Fuels to capitalize on the evolving marine fuel sector, particularly as global shipping companies face increasing pressure to optimize fuel solutions and comply with environmental regulations.

The successful completion of both the initial offering and over-allotment provides Uni-Fuels with a solid foundation for executing its growth strategy in the marine fuel solutions market, though investors should monitor the company's ability to effectively deploy this capital in a competitive landscape.

SINGAPORE, Feb. 04, 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 that on February 4, 2025, the underwriter of its previously announced initial public offering (the “Offering”) has exercised its over-allotment option (the “Over-Allotment Option”) in full and purchased an additional 315,000 Class A Ordinary Shares of the Company at the public offering price of $4.00 per share, resulting in additional gross proceeds of $1.26 million. 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 2,415,000 Class A Ordinary Shares and the gross proceeds increased to $9.66 million, before deducting underwriting discounts and commissions.

The Class A Ordinary Shares commenced trading on Nasdaq Capital Market on January 14, 2025 under the ticker symbol “UFG.”

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 as cash reserve and general corporate purposes.

The Offering was conducted on a firm commitment basis. R. F. Lafferty & Co., Inc. acted 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. This Offering was made only by means of a prospectus. A copy of the final prospectus relating to the Offering 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 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

How much did Uni-Fuels (UFG) raise from the over-allotment option exercise?

Uni-Fuels raised an additional $1.26 million from the full exercise of the over-allotment option, with 315,000 Class A Ordinary Shares sold at $4.00 per share.

What are the total proceeds from Uni-Fuels' (UFG) IPO including the over-allotment?

The total gross proceeds reached $9.66 million from selling 2,415,000 Class A Ordinary Shares, before deducting underwriting discounts and commissions.

When did Uni-Fuels (UFG) begin trading on Nasdaq?

Uni-Fuels began trading on the Nasdaq Capital Market on January 14, 2025, under the ticker symbol 'UFG'.

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

The proceeds will be used for scaling up reselling activities, strengthening workforce, expanding market presence in new geographical locations, and for cash reserve and general corporate purposes.

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

R. F. Lafferty & Co., Inc. acted as the sole book-running manager for the offering.