Waton Financial Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

Waton Financial (WTF), a British Virgin Islands company providing securities brokerage and fintech services through Hong Kong subsidiaries, has announced the pricing of its initial public offering (IPO). The company is offering 4,375,000 ordinary shares at $4.00 per share, aiming to raise approximately $17.5 million in gross proceeds.

Trading is set to commence on April 1, 2025, on the Nasdaq Capital Market under the symbol 'WTF', with the offering expected to close on April 2, 2025. The company has granted underwriters a 45-day option to purchase up to additional 656,250 shares. CATHAY SECURITIES, INC. is acting as the lead underwriter, with Dominari Securities as co-underwriter.

Positive

• IPO will raise $17.5 million in gross proceeds
• Listing on major exchange (Nasdaq Capital Market)
• Firm commitment basis offering provides certainty of funding

Negative

• Potential dilution from 656,250 share over-allotment option
• No specified use of proceeds detailed in the announcement
• Operating in multiple jurisdictions (BVI, Hong Kong) may pose regulatory risks

Insights

Financial Analyst

Waton Financial has successfully priced its initial public offering at $4.00 per share, with 4,375,000 ordinary shares offered. This pricing establishes a $17.5 million capital raise before deducting underwriting fees and expenses. The firm commitment basis of the offering provides certainty regarding the capital infusion.

The company has also granted underwriters a 45-day option to purchase up to an additional 656,250 shares at the IPO price, which could potentially increase proceeds by approximately $2.63 million if fully exercised. This standard over-allotment provision represents about 15% of the base offering.

Trading is set to commence on April 1, 2025, on the Nasdaq Capital Market under ticker symbol "WTF," with the offering expected to close the following day. This pricing announcement indicates the final step before Waton transitions from private to public status, providing the company with access to public capital markets for the first time.

As a British Virgin Islands-incorporated holding company operating primarily through Hong Kong subsidiaries in securities brokerage and financial technology services, this IPO represents a significant corporate milestone that enhances the company's financial flexibility and public profile.

HONG KONG, April 01, 2025 (GLOBE NEWSWIRE) -- Waton Financial Limited (“WTF” or the “Company”), a British Virgin Islands-incorporated holding company that provides of securities brokerage and financial technology services primarily through its Hong Kong subsidiaries, Waton Securities International Limited and Waton Technology International Limited, today announced the pricing of its initial public offering of an aggregate of 4,375,000 ordinary shares, no par value per share (the “Ordinary Shares”), at a public offering price of $4.00 per share (the “Offering”).

In addition, the Company has granted the underwriters of the Offering a 45-day option to purchase up to an additional 656,250 Ordinary Shares at the initial public offering price (the “Over-allotment”), less underwriting discounts and commissions. The gross proceeds to WTF from the Offering (assuming that the Over-allotment is not exercised), before deducting underwriting discounts and commissions and estimated offering expenses payable by WTF, is expected to be approximately $17,500,000.

The Ordinary Shares are expected to begin trading on the Nasdaq Capital Market under the ticker symbol “WTF” on April 1, 2025. The Offering is expected to close on April 2, 2025, subject to customary closing conditions.

The Offering is conducted on a firm commitment basis. CATHAY SECURITIES, INC. is acting as representative of the underwriters for the offering, with Dominari Securities LLC acting as co-underwriter (collectively, the “Underwriters”). Carey Olsen Singapore LLP, Han Kun Law Offices LLP and Hunter Taubman Fischer & Li LLC are acting as British Virgin Islands legal counsel, Hong Kong legal advisers and U.S. securities counsel, respectively, to the Company. Kaufman & Canoles, P.C. is acting as U.S. securities counsel to the Underwriters for the Offering.

The Offering is being conducted pursuant to the Company’s Registration Statement on Form F-1 (File No. 333-283424) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission (“SEC”) on March 31, 2025. The Offering is being made only by means of a prospectus. 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. You may get these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, electronic copies of the prospectus relating to the Offering may be obtained from CATHAY SECURITIES, INC. at 40 Wall Street, Suite 3600, New York, NY 10005, or by telephone at +1 (855) 939-3888. 

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 securities, and no sale of these securities may be made 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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release are “forward-looking statements” as defined under the federal securities laws, including, but not limited to, statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. 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, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “believe”, “plan”, “expect”, “intend”, “should”, “seek”, “estimate”, “will”, “aim” and “anticipate”, or other similar expressions in this press release. 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. 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, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

About Waton Financial Limited (“Waton”)

Waton Financial Limited is a British Virgin Islands-incorporated holding company with operations primarily conducted through its wholly-owned subsidiaries in Hong Kong, Waton Securities International Limited and Waton Technology International Limited. Waton provides a suite of financial services, including securities brokerage, asset management, and software licensing and other support services, catering to a diverse clientele of retail and institutional investors. Waton leverages technology and a client-centric approach with the aim to deliver innovative and reliable financial solutions.

For further information, please contact:

Waton Financial Limited 
Investor Relations Department
Email: ir@waton.com

FAQ

What is the IPO price and size for Waton Financial (WTF) stock?

WTF is offering 4,375,000 ordinary shares at $4.00 per share, aiming to raise $17.5 million in gross proceeds.

When will WTF stock begin trading on Nasdaq?

WTF stock is scheduled to begin trading on the Nasdaq Capital Market on April 1, 2025.

What is the over-allotment option for WTF's IPO?

Underwriters have a 45-day option to purchase up to 656,250 additional shares at the IPO price.

Who are the underwriters for Waton Financial's IPO?

CATHAY SECURITIES, INC. is the lead underwriter, with Dominari Securities acting as co-underwriter.