Webus International Limited Announces Pricing of Initial Public Offering and Listing on the Nasdaq Capital Market

Rhea-AI Summary

Webus International (NASDAQ: WETO), an AI-driven mobility solutions provider specializing in premium chauffeur services, has announced the pricing of its initial public offering (IPO). The company is offering 2,000,000 ordinary shares at $4.00 per share, aiming to raise $8 million in gross proceeds before deducting underwriting costs.

The underwriters have a 45-day option to purchase an additional 300,000 shares, potentially increasing gross proceeds to $9.2 million. Trading is expected to begin on the Nasdaq Capital Market on February 27, 2025, with the offering closing on February 28, 2025. Alexander Capital is serving as sole bookrunner, alongside Network 1 Financial Securities and R.F. Lafferty & Co. as co-underwriters.

Positive

• First-time access to public capital markets through Nasdaq listing
• Secured $8M in initial gross proceeds with potential for $9.2M if over-allotment exercised
• Firm commitment underwriting structure provides deal certainty

Negative

• Small offering size of only $8M may limit growth potential
• Potential dilution for existing shareholders
• Additional expenses from being a public company will increase operational costs

Insights

Financial Analyst

Webus International (NASDAQ: WETO) has priced its initial public offering at $4.00 per share, raising $8 million in gross proceeds through the issuance of 2 million ordinary shares. The underwriters have a 45-day option to purchase an additional 300,000 shares, potentially increasing total gross proceeds to $9.2 million.

This IPO is notably small for a Nasdaq listing, suggesting Webus may be at an early commercialization stage despite describing itself as a "leading provider" in the AI-driven mobility space. The modest capital raise indicates the company may need additional funding rounds if it pursues aggressive growth strategies in the premium chauffeur service market.

The firm commitment structure from the underwriters (Alexander Capital, Network 1 Financial, and R.F. Lafferty) provides some confidence in the offering's completion, though the involvement of smaller investment banks rather than major underwriters suggests institutional interest at this stage.

As a Chinese company listing on U.S. markets, Webus faces heightened regulatory scrutiny from both Chinese and American authorities. Chinese tech companies listing abroad have encountered significant regulatory hurdles in recent years, creating potential compliance risks that investors should monitor.

The AI-driven mobility sector represents a growing market, though Webus will face intense competition from both established ride-hailing giants and other specialized premium transportation providers. Without detailed financial metrics, it's difficult to assess the company's current market penetration, revenue trajectory, or pathway to profitability.

Hangzhou, CHINA, Feb. 26, 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 pricing 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, for a total of $8,000,000 of gross proceeds, before deducting underwriting discounts and other offering expenses.

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.

The Company's Ordinary Shares are expected to begin trading on the Nasdaq Capital Market on February 27, 2025, under the ticker symbol “WETO.” The Offering is expected to close on February 28, 2025, subject to the satisfaction of customary closing conditions.

The Offering is being conducted on a firm commitment basis. Alexander Capital, L.P. is acting as sole bookrunner and co-lead underwriter, with Network 1 Financial Securities, Inc. acting as co-lead underwriter and R.F. Lafferty & Co., Inc. acting as co-managing underwriter. VCL Law LLP is acting as securities counsel to the Company, and Loeb & Loeb LLP is acting as securities counsel to the underwriters in connection with the Offering. Ogier (Cayman) LLP acting as counsel to the Company as to Cayman Islands law, and Allbright Law Offices acting 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, when available, 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

What is the IPO price and share offering of Webus International (WETO) in February 2025?

Webus International (WETO) is offering 2,000,000 ordinary shares at $4.00 per share, with a total initial offering size of $8 million.

When will WETO stock begin trading on Nasdaq?

WETO shares are scheduled to begin trading on the Nasdaq Capital Market on February 27, 2025.

What is the over-allotment option in Webus International's IPO?

Underwriters have a 45-day option to purchase up to 300,000 additional shares at $4.00 per share, potentially increasing proceeds to $9.2 million.

Who are the underwriters for the Webus International (WETO) IPO?

Alexander Capital is the sole bookrunner, with Network 1 Financial Securities and R.F. Lafferty & Co. serving as co-underwriters.