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Wing Yip Food Holdings Group Limited Announces Underwriters’ Full Exercise of Over-Allotment Option

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Wing Yip Food Holdings Group (WYHG) announced that underwriters have fully exercised their over-allotment option to purchase an additional 307,500 American Depositary Shares (ADSs) at $4.00 per ADS, generating extra gross proceeds of $1.23 million. This brings the total offering to 2,357,500 ADSs with gross proceeds of approximately $9.43 million before expenses.

The ADSs began trading on the Nasdaq Capital Market on November 26, 2024. The company plans to use the proceeds for upgrading and establishing production lines, marketing and promotion, new product R&D, and working capital. Dawson James Securities and D. Boral Capital served as underwriters for the offering.

Wing Yip Food Holdings Group (WYHG) ha annunciato che i sottoscrittori hanno completamente esercitato la loro opzione di over-allotment per acquistare ulteriori 307.500 American Depositary Shares (ADS) a $4,00 ciascuna, generando ulteriori proventi lordi di $1,23 milioni. Questo porta l'offerta totale a 2.357.500 ADS con proventi lordi di circa $9,43 milioni prima delle spese.

Le ADS hanno iniziato a essere scambiate sul Nasdaq Capital Market il 26 novembre 2024. La società prevede di utilizzare i proventi per l'aggiornamento e l'istituzione di linee di produzione, marketing e promozione, ricerca e sviluppo di nuovi prodotti e capitale circolante. Dawson James Securities e D. Boral Capital hanno svolto il ruolo di sottoscrittori per l'offerta.

Wing Yip Food Holdings Group (WYHG) anunció que los suscriptores han ejercido completamente su opción de sobreasignación para comprar 307,500 American Depositary Shares (ADS) adicionales a $4.00 por ADS, generando ingresos brutos adicionales de $1.23 millones. Esto eleva la oferta total a 2,357,500 ADS con ingresos brutos de aproximadamente $9.43 millones antes de gastos.

Las ADS comenzaron a cotizar en el Nasdaq Capital Market el 26 de noviembre de 2024. La compañía planea utilizar los ingresos para actualizar y establecer líneas de producción, marketing y promoción, I+D de nuevos productos y capital de trabajo. Dawson James Securities y D. Boral Capital actuaron como suscriptores para la oferta.

Wing Yip Food Holdings Group (WYHG)는 주관사들이 307,500개의 추가 American Depositary Shares (ADS)를 주당 $4.00에 구매하기 위한 초과 배정 옵션을 완전히 행사했다고 발표했습니다. 이는 총 $1.23백만의 추가 총 수익을 생성합니다. 이로써 총 제안은 2,357,500개의 ADS로 증가하며, 경비를 제외한 총 수익은 약 $9.43백만에 이릅니다.

ADS는 2024년 11월 26일 Nasdaq Capital Market에서 거래를 시작했습니다. 회사는 수익을 생산 라인 업그레이드 및 설립, 마케팅 및 판촉, 신제품 연구 개발, 운영 자본에 사용할 계획입니다. Dawson James Securities와 D. Boral Capital은 이 제안의 주관사 역할을 했습니다.

Wing Yip Food Holdings Group (WYHG) a annoncé que les souscripteurs ont entièrement exercé leur option de sur-allotissement pour acheter 307 500 American Depositary Shares (ADS) supplémentaires au prix de 4,00 $ par ADS, générant des recettes brutes supplémentaires de 1,23 million $. Cela porte l'offre totale à 2 357 500 ADS avec des recettes brutes d'environ 9,43 millions $ avant frais.

Les ADS ont commencé à être échangées sur le Nasdaq Capital Market le 26 novembre 2024. L'entreprise prévoit d'utiliser les recettes pour mettre à niveau et établir des lignes de production, le marketing et la promotion, la R&D de nouveaux produits et le fonds de roulement. Dawson James Securities et D. Boral Capital ont servi de souscripteurs pour l'offre.

Wing Yip Food Holdings Group (WYHG) gab bekannt, dass die Zeichner ihre Überzeichnungsoption vollständig ausgeübt haben, um zusätzlich 307.500 American Depositary Shares (ADS) zu einem Preis von 4,00 $ pro ADS zu erwerben, was zusätzliche Bruttoeinnahmen von 1,23 Millionen $ generiert. Dies bringt das gesamte Angebot auf 2.357.500 ADS mit Bruttoeinnahmen von etwa 9,43 Millionen $ vor Ausgaben.

Die ADS begannen am 26. November 2024 am Nasdaq Capital Market zu handeln. Das Unternehmen plant, die Einnahmen für die Aufrüstung und Errichtung von Produktionslinien, Marketing und Promotion, Forschung und Entwicklung neuer Produkte sowie Betriebskapital zu verwenden. Dawson James Securities und D. Boral Capital fungierten als Zeichner für das Angebot.

Positive
  • Successfully raised additional $1.23 million through full exercise of over-allotment option
  • Total IPO proceeds reached $9.43 million gross
  • Achieved Nasdaq Capital Market listing
Negative
  • Potential shareholder dilution from additional 307,500 ADS issuance

Insights

The successful exercise of the over-allotment option represents strong market demand for Wing Yip's IPO. The additional $1.23 million brings total gross proceeds to $9.43 million, providing substantial capital for the company's expansion plans. The full exercise at the $4.00 per ADS price point suggests confident institutional interest, particularly noteworthy for a small-cap Chinese company in the current market environment.

The planned allocation of proceeds towards production line upgrades and new product development indicates a growth-focused strategy. However, investors should note the relatively modest size of the IPO and market cap ($236.6 million), which may impact trading liquidity. The dual underwriter structure with Dawson James and D. Boral Capital provides decent distribution capabilities, though these are mid-tier investment banks typically focused on smaller offerings.

For retail investors, this stock carries typical risks associated with newly listed Chinese small-caps - operating history in U.S. markets, potential governance concerns and market volatility. The meat processing sector in China faces both opportunities from rising protein consumption and challenges from regulatory oversight and competition.

Wing Yip's positioning in China's meat processing sector comes at a strategic time. The Chinese processed meat market is projected to grow at a 8.2% CAGR through 2030, driven by urbanization and changing consumer preferences. The company's focus on upgrading production lines and R&D aligns well with increasing demand for higher-quality processed meat products in tier-2 and tier-3 Chinese cities.

The successful IPO execution, particularly the full exercise of the over-allotment option, demonstrates institutional confidence in Wing Yip's business model and growth prospects. The $9.43 million capital raise, while modest by U.S. standards, provides meaningful expansion capacity in the Chinese market context where operating costs are lower.

Think of this IPO as planting a seed in fertile ground - the Chinese consumer market continues to upgrade food consumption patterns, creating opportunities for companies that can meet evolving quality and safety standards. However, success will depend on effective execution of the stated expansion plans and navigation of China's complex regulatory environment.

Zhongshan, China, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Wing Yip Food Holdings Group Limited (the “Company” or “Wing Yip”) (Nasdaq: WYHG), a meat product processing company through its operating subsidiaries in mainland China, today announced that the underwriters of its initial public offering (the "Offering") have exercised their over-allotment option in full to purchase an additional 307,500 American Depositary Shares (“ADSs”) at the public offering price of US$4.00 per ADS, resulting in additional gross proceeds of $1,230,000. Each ADS represents one ordinary share of the Company. After giving effect to the full exercise of the over-allotment option, the total number of ADSs sold by the Company in the public offering increased to 2,357,500 ADSs and the gross proceeds increased to approximately US$9.43 million, before deducting underwriter discounts and other related expenses. The option closing date was January 14, 2025. The ADSs commenced trading on the Nasdaq Capital Market on November 26, 2024 under the ticker symbol “WYHG.”

Dawson James Securities, Inc. and D. Boral Capital LLC acted as the underwriters (collectively, the “Underwriters”) for the Offering. Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to the Company, and Nelson Mullins Riley & Scarborough LLP acted as U.S. counsel to the Underwriters in connection with the Offering.

The Company intends to use the proceeds from the Offering for (i) upgrading existing production lines and establishing new production lines; (ii) marketing and promotion of the Company’s products; (iii) new product research and development; and (iv) working capital and general corporate matters.

A registration statement on Form F-1 (File Number: 333-277694), as amended, relating to the Offering (the “Registration Statement”) was filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on November 6, 2024. The Offering was made only by means of a prospectus, forming a part of the Registration Statement. Copies of the prospectus relating to the Offering may be obtained from Dawson James Securities, Inc., at 101 North Federal Highway, Suite 600, Boca Raton, FL 33432, or by telephone at (561) 391-5555, or by email at investmentbanking@dawsonjames.com; or by contacting D. Boral Capital LLC, at Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, or by email at syndicate@dboralcapital.com, or by telephone at (212) 970-5150​. In addition, copies of the 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 Wing Yip Food Holdings Group Limited

Wing Yip, is a meat product processing company in mainland China. The Company, through its operating subsidiaries, sells and markets products under its flagship brand, “Wing Yip,” which can trace its history back to 1915, and has also developed the snack product brands, “Jiangwang” and “Kuangke.” The Company’s products are sold through its self-operated stores, distributors, and e-commerce platforms in over 18 provinces across mainland China. The Company offers cured meat products, snack products, and frozen meat products, processing them through its own dedicated production lines. The Company focuses on product development and is committed to improving product quality and expanding product offerings to cater to evolving consumer preferences. The Company's ordinary shares have been listed on the Korea Securities Dealers Automated Quotations of the Korea Exchange since 2018.

For more information, please visit the Company’s website: http://ir.wingyip-food.com/. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.

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 identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. 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 that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the Registration Statement filed with the SEC. 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. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

Wing Yip Food Holdings Group Limited
Investor Relations Department
Email: ir@wingyip-food.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com


FAQ

How much additional capital did WYHG raise through the over-allotment option exercise?

WYHG raised an additional $1.23 million through the full exercise of the over-allotment option, with 307,500 ADSs sold at $4.00 per ADS.

What are the total IPO proceeds for WYHG after the over-allotment exercise?

After the full exercise of the over-allotment option, WYHG's total gross proceeds increased to approximately $9.43 million, with a total of 2,357,500 ADSs sold.

When did WYHG begin trading on the Nasdaq Capital Market?

WYHG began trading on the Nasdaq Capital Market on November 26, 2024.

How does WYHG plan to use its IPO proceeds?

WYHG plans to use the proceeds for upgrading existing production lines, establishing new production lines, marketing and promotion, new product R&D, and working capital and general corporate matters.

What was the IPO price per ADS for WYHG?

The public offering price was US$4.00 per ADS, with each ADS representing one ordinary share of the company.

Wing Yip Food Holdings Group Limited American Depositary Shares

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Packaged Foods
Consumer Defensive
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United States of America
Zhongshan City