Wellchange Holdings Company Limited Announces Full Exercise of Underwriters’ Over-Allotment Option

Rhea-AI Summary

Wellchange Holdings Company (Nasdaq: WCT), a Hong Kong-based enterprise software solution services provider, announced the full exercise of the underwriters' over-allotment option for its initial public offering. This resulted in the sale of an additional 165,000 ordinary shares at US$4.00 per share, generating extra gross proceeds of $660,000. The total offering now comprises 1,265,000 ordinary shares with gross proceeds of approximately $5.06 million.

The company began trading on the Nasdaq Capital Market on October 2, 2024, under the ticker symbol "WCT". Proceeds will be used for enhancing service capacity, marketing efforts, international expansion, and general working capital. Dominari Securities is the lead underwriter, with Revere Securities as co-underwriter.

Positive

• Full exercise of over-allotment option, increasing total shares sold to 1,265,000
• Additional gross proceeds of $660,000, bringing total to approximately $5.06 million
• Successful listing on Nasdaq Capital Market
• Planned use of proceeds for technology improvements, expansion, and working capital

Negative

• None.

Insights

Financial Analyst

The full exercise of the over-allotment option by underwriters is a positive signal for Wellchange Holdings. This move has increased the total gross proceeds from the IPO to $5.06 million, up from the initial $4.4 million. The additional capital infusion of $660,000 strengthens the company's financial position and provides more resources for its growth initiatives.

The planned use of proceeds, including enhancing service capacity, improving core technologies and expanding internationally, aligns with a growth-oriented strategy. The focus on SaaS platform expansion and potential M&A activities in the U.S. and Australia indicates ambitions for market expansion and diversification.

However, investors should note that with a market cap of $140.7 million and an IPO raise of just over $5 million, the company may still need to prove its ability to scale and compete effectively in the enterprise software solutions market. The success of its planned initiatives and efficient use of the new capital will be important for long-term value creation.

Tech Industry Analyst

Wellchange's focus on enhancing its SaaS platform and core software technologies with the IPO proceeds is strategically sound in the rapidly evolving enterprise software market. The company's emphasis on improving service capacity suggests a commitment to scalability and customer satisfaction, which are critical factors for success in the SaaS industry.

The planned international expansion, particularly into the U.S. and Australian markets, presents both opportunities and challenges. While it opens up new revenue streams, it also exposes Wellchange to intense competition from established global players. The company's ability to differentiate its offerings and adapt to local market needs will be crucial.

Investors should monitor Wellchange's R&D investments and product development roadmap, as innovation will be key to maintaining competitiveness. Additionally, the success of any future M&A activities will depend on how well they complement Wellchange's existing technologies and market position.

HONG KONG, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Wellchange Holdings Company Limited (the “Company” or “Wellchange”) (Nasdaq: WCT), an enterprise software solution services provider headquartered in Hong Kong, 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 165,000 ordinary shares at the public offering price of US$4.00 per share, resulting in additional gross proceeds of $660,000. After giving effect to the full exercise of the over-allotment option, the total number of ordinary shares sold by Wellchange in the public offering increased to 1,265,000 ordinary shares and the gross proceeds increased to approximately $5.06 million, before deducting underwriting discounts and offering expenses payable by the Company. The option closing date was October 17, 2024.The Company also issued the representative of the underwriters warrants to purchase up to 5,775 Ordinary Shares. The Ordinary Shares had begun trading on the Nasdaq Capital Market on October 2, 2024, under the ticker symbol “WCT.”

Net proceeds from the Offering will be used by the Company for enhancing its service capacity by improving core software technologies and expanding its SaaS platform, marketing and branding efforts through offline and online campaigns, and for international expansion, including establishing operations in the United States and Australia and pursuing strategic mergers, acquisitions, or investments, as well as for general working capital and corporate purposes.

The Offering was conducted on a firm commitment basis. Dominari Securities LLC is acting as the lead underwriter and Revere Securities LLC is acting as co-underwriter for the Offering. Ortoli Rosenstadt LLP is acting as U.S. counsel to the Company, and Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the underwriters in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-276946), as amended, and was declared effective by the SEC on September 30, 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 by email at info@dominarisecurities.com, by standard mail to Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor, New York, NY 10022, or by calling (212) 393-4500. In addition, copies of the final prospectus relating to the Offering may be obtained via the SEC’s website at www.sec.gov.

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 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 Wellchange Holdings Company Limited

Wellchange Holdings Company Limited is an enterprise software solution services provider headquartered in Hong Kong. The Company conducts all operations in Hong Kong through its operating subsidiary, Wching Tech Ltd Co. The Company provides customized software solutions, cloud-based software-as-a-service (“SaaS”) platforms, and “white-label” software design and development services. The Company’s mission is to empower our customers and users, in particular, small and medium businesses, to accelerate their digital transformation, optimize productivity, improve customer experiences, and enable resource-efficient growth with our low-cost, user-friendly, reliable and integrated all-in-one Enterprise Resource Planning software solutions.

For more information, please visit the Company’s website: https://www.wchingtech.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. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. 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. 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.

For investor and media inquiries, please contact:

Wellchange Holdings Company Limited
Shek Kin Pong, CEO
Email: Power@wchingtech.com

FAQ

How many additional shares did Wellchange (WCT) sell through the over-allotment option?

Wellchange (WCT) sold an additional 165,000 ordinary shares through the full exercise of the underwriters' over-allotment option.

What was the total gross proceeds for Wellchange's (WCT) IPO after the over-allotment option exercise?

After the full exercise of the over-allotment option, the total gross proceeds for Wellchange's (WCT) IPO increased to approximately $5.06 million.

When did Wellchange (WCT) begin trading on the Nasdaq Capital Market?

Wellchange (WCT) began trading on the Nasdaq Capital Market on October 2, 2024, under the ticker symbol 'WCT'.

What are the main purposes for which Wellchange (WCT) plans to use the IPO proceeds?

Wellchange (WCT) plans to use the IPO proceeds for enhancing service capacity, improving core software technologies, expanding its SaaS platform, marketing efforts, international expansion, and general working capital.