Webus International Limited Announces Closing of Initial Public Offering

Rhea-AI Summary

Webus International (NASDAQ: WETO), a leading AI-driven mobility solutions provider specializing in premium chauffeur services, has successfully completed its Initial Public Offering (IPO). The company offered 2,000,000 ordinary shares at $4.00 per share, raising gross proceeds of $8 million.

Trading of WETO shares commenced on the Nasdaq Capital Market on February 27, 2025. The company granted underwriters a 45-day option to purchase up to 300,000 additional shares, which could increase total gross proceeds to $9.2 million if fully exercised. Alexander Capital served as sole bookrunner, with Network 1 Financial Securities and R.F. Lafferty & Co. as co-lead and co-managing underwriters respectively.

Positive

• Successfully completed IPO raising $8M in gross proceeds
• Listed on Nasdaq Capital Market
• Additional $1.2M potential proceeds from over-allotment option

Negative

• Relatively small IPO size of $8M indicates initial capital raise
• Low IPO price of $4.00 suggests early-stage valuation

Insights

Financial Analyst

Webus International's IPO represents a modest capital raise in the current market environment. With $8 million in gross proceeds from selling 2 million shares at $4 each, this is a relatively small offering that values the company at approximately $8 million in market capitalization - significantly below the typical Nasdaq listing. The 15% over-allotment option could add another $1.2 million if exercised fully.

The pricing at $4 per share - just above the $3.6 current price - suggests some initial price discovery challenges, not uncommon for smaller IPOs where investment banks must balance appropriate valuation with investor appetite. The involvement of three underwriters (Alexander Capital as bookrunner, Network 1 Financial, and R.F. Lafferty) for such a small offering indicates the company needed multiple firms to distribute the shares.

The AI-driven mobility solutions space is crowded, making Webus's ability to differentiate critical. Investors should carefully analyze how the $8 million proceeds (before expenses) will fund growth plans, as this represents operational runway without additional financing. This capital structure suggests early dilution risk if the company needs additional funding before achieving sustainable operations.

IPO Specialist

This IPO demonstrates the widening IPO window extending to smaller, earlier-stage companies in 2025. Webus's modest $8 million raise positions it at the micro-cap end of the Nasdaq spectrum, which typically introduces heightened volatility and liquidity challenges. The company's Chinese headquarters adds another layer of complexity given the current regulatory environment for Chinese companies in U.S. markets.

The trading debut shows the stock is already trading below its $4 offering price at $3.6, representing a 10% decline on its second day. This immediate price pressure reflects typical early volatility but also suggests institutional support beyond the initial allocation. The small float of just 2 million shares makes the stock susceptible to significant price swings on relatively low volume.

Webus's focus on "premium, customizable chauffeur services" powered by AI technology positions it in a niche segment of the mobility market. However, without disclosed revenue figures, growth rates, or profitability metrics in this announcement, investors face significant information gaps when evaluating this early-stage public company. The micro-cap nature combined with its specific operational jurisdiction requires careful due diligence from interested investors.

Hangzhou, CHINA, Feb. 28, 2025 (GLOBE NEWSWIRE) -- Webus International Limited (the “Company”) (NASDAQ: WETO), a leading provider of AI-driven mobility solutions specializing in premium, customizable chauffeur services worldwide, today announced the closing of its initial public offering (the “Offering”) of 2,000,000 ordinary shares (the “Ordinary Shares”) at a public offering price of $4.00 per share (the “Offering Price”) to the public.

The Company's Ordinary Shares began trading on the Nasdaq Capital Market on February 27, 2025, under the ticker symbol “WETO.”

The Company received aggregate gross proceeds of $8,000,000 from the Offering, before deducting underwriting discounts and other offering expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 300,000 Ordinary Shares at the Offering Price, representing 15% of the Ordinary Shares sold in the Offering (the “Over-allotment”).

Assuming that the Over-allotment is exercised, the Company is expected to receive gross proceeds amounting to $9.2 million before deducting underwriting discounts and commissions and estimated offering expenses.

Alexander Capital, L.P. acted as sole bookrunner and co-lead underwriter, Network 1 Financial Securities, Inc.  acted as co-lead underwriter and R.F. Lafferty & Co., Inc. acted as co-managing underwriter. VCL Law LLP acted as U.S. securities counsel to the Company, and Loeb & Loeb LLP acted as U.S. securities counsel to the underwriters in connection with the Offering. Ogier (Cayman) LLP acted as counsel to the Company as to Cayman Islands law, and Allbright Law Offices acted as counsel to the Company as to PRC law.

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: 333-269684), as amended, and was declared effective by the SEC on February 26, 2025. The Offering is being made only by means of a prospectus, forming a part of the registration statement. 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. A copy of the final prospectus relating to the Offering may be obtained from Alexander Capital L.P., 10 Drs James Parker Boulevard #202, Red Bank, New Jersey 07701, Attention: Equity Capital Markets, or by calling (212) 687-5650 or emailing info@alexandercapitallp.com or by logging on to 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 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 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 other jurisdiction.

About Webus International Limited

Webus International Limited is a leading provider of AI-driven mobility solutions specializing in premium, customizable chauffeur services worldwide. Through our innovative "Mobility-as-a-Service" (MaaS) model, we deliver exceptional personalized transportation experiences with our extensive fleet of luxury vehicles and professional chauffeurs worldwide.

Our flagship brand “Wetour” specializes in high-end customized travel services, offering airport transfers, intercity transportation, private guided tours, and luxury chartered services for both leisure and business travelers. Leveraging proprietary technology, our platform integrates real-time AI support with 24/7 multilingual itinerary management, ensuring seamless mobility solutions across all international destinations we serve.. For more information, please visit our website at www.webus.vip or www.wetourglobal.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its common stock on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in 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.

Investor Relations Contact:

Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

Underwriter Inquiries:
Alexander Capital L.P.
Jonathan Gazdak, Managing Director
10 Drs James Parker Boulevard #202,
Red Bank, NJ 07701
+1 (212) 687-5650
Email: info@alexandercapitallp.com

FAQ

How much did Webus International (WETO) raise in its February 2025 IPO?

Webus International raised $8 million in gross proceeds through its IPO, offering 2 million ordinary shares at $4.00 per share.

What is the over-allotment option for WETO's IPO and when does it expire?

WETO granted a 45-day option to purchase up to 300,000 additional shares at $4.00 per share, potentially adding $1.2 million in proceeds.

When did WETO stock begin trading on Nasdaq?

WETO shares began trading on the Nasdaq Capital Market on February 27, 2025.

Who were the underwriters for Webus International's IPO?

Alexander Capital was the sole bookrunner, with Network 1 Financial Securities as co-lead underwriter and R.F. Lafferty & Co. as co-managing underwriter.