XCHG Limited Announces Partial Exercise of Over-Allotment Option in Initial Public Offering

Rhea-AI Summary

XCHG (NASDAQ: XCH), a global leader in integrated EV charging solutions, has announced the partial exercise of the over-allotment option in its initial public offering (IPO). The underwriter, US Tiger Securities, Inc., has purchased an additional 128,888 American Depositary Shares (ADSs) at the IPO price of $6.20 per ADS. Each ADS represents 40 Class A ordinary shares of the Company.

The total gross proceeds from the offering, including funds from the prior closing and this option exercise, amount to approximately $21.5 million, before deducting underwriting discounts, commissions, and other offering expenses. A registration statement for the offered securities has been filed with and declared effective by the SEC.

Positive

• Successful partial exercise of over-allotment option, indicating demand for XCH shares
• Additional gross proceeds of approximately $21.5 million raised from the IPO
• Listing on NASDAQ, potentially increasing visibility and liquidity for the stock

Negative

• Dilution of existing shareholders due to additional shares being issued
• Underwriting discounts, commissions, and offering expenses will reduce net proceeds

Insights

Financial Analyst

The partial exercise of the over-allotment option by XCharge's IPO underwriter is a positive development for the company. This additional sale of 128,888 ADSs at $6.20 per ADS has increased the total gross proceeds to approximately $21.5 million. This extra capital infusion will provide XCharge with more financial flexibility to execute its growth strategy in the competitive EV charging market.

The decision by the underwriter to partially exercise the option suggests there was decent demand for XCharge's shares, although not overwhelming enough to warrant a full exercise. This moderate enthusiasm aligns with the company's relatively modest market cap of $751 million.

For investors, this news indicates potential for short-term price stability as the additional shares are absorbed by the market. Long-term, the increased funding could accelerate XCharge's expansion plans, potentially leading to faster revenue growth. However, investors should monitor how effectively the company deploys this capital in a rapidly evolving industry.

Market Research Analyst

XCharge's IPO and subsequent over-allotment exercise reflect growing investor interest in the EV charging infrastructure sector. With a global push towards electrification, companies like XCharge are well-positioned to capitalize on this trend. The $21.5 million raised, while not a massive sum, provides a solid foundation for a company in this space.

The pricing at $6.20 per ADS and the partial exercise of the over-allotment option suggest a cautiously optimistic market reception. Investors appear to recognize the potential in XCharge's integrated solutions approach but may be tempering expectations given the competitive landscape and capital-intensive nature of the industry.

For the broader market, this IPO serves as a barometer for investor appetite in cleantech and EV-related stocks. The moderate success of this offering could encourage other players in the sector to consider public listings, potentially leading to increased M&A activity and market consolidation in the coming years.

HAMBURG, Germany, Oct. 11, 2024 (GLOBE NEWSWIRE) -- XCHG Limited (“XCharge” or the “Company”) (NASDAQ: XCH), a global leader in integrated EV charging solutions, today announced that the underwriter of the Company’s initial public offering (the “IPO”) has partially exercised its option (the “Over-Allotment Option”) to purchase an additional 128,888 American Depositary Shares (“ADSs”) of the Company at the initial public offering price of US$6.20 per ADS. Each ADS represents 40 Class A ordinary shares of the Company. Total gross proceeds to the Company from the offering, including funds received from the prior closing and exercise of this option are approximately $21.5 million, before deducting underwriting discounts, commissions, and other offering expenses payable by the Company.

US Tiger Securities, Inc. is acting as the sole underwriter for the offering.

A registration statement related to these offered securities has been filed with, and declared effective by, the United States Securities and Exchange Commission (the “SEC”). This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This offering is being made only by means of a prospectus forming part of the effective registration statement. A copy of the final prospectus relating to the offering may be obtained, when available, by contacting US Tiger Securities, Inc. at 437 Madison Avenue, 27th Floor, New York, NY 10022, United States, or by telephone at +1-646-921-7031, or by email at ECM@ustigersecurities.com.

About XCharge

XCharge, founded in 2015, is a global leader in integrated EV charging solutions. The Company offers comprehensive EV charging solutions which primarily include the DC fast chargers, the advanced battery-integrated DC fast chargers, as well as its accompanying services. Through the combination of XCharge’s proprietary charging technology, energy storage system technology, and accompanying services, the Company enhances EV charging efficiency and unlocks the value of energy storage and management. Committed to providing innovative and efficient EV charging solutions, XCharge is actively working towards establishing a global green future that is critical to long-term growth and development.

For more information, please visit: https://investors.xcharge.com/

Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

XCharge
IR Department
Email: ir@xcharge.com

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Jenny Cai
Tel: +86 (10) 6508-0677
Email: XCharge@tpg-ir.com

Source: XCHG Limited

FAQ

What was the IPO price for XCHG (XCH) ADSs?

The initial public offering price for XCHG (XCH) American Depositary Shares was $6.20 per ADS.

How many additional ADSs were sold through the over-allotment option for XCH?

The underwriter purchased an additional 128,888 American Depositary Shares (ADSs) of XCHG (XCH) through the partial exercise of the over-allotment option.

What are the total gross proceeds from XCHG 's (XCH) IPO?

The total gross proceeds to XCHG (XCH) from the offering, including funds from the prior closing and exercise of the over-allotment option, are approximately $21.5 million, before deducting expenses.

Who was the underwriter for XCHG 's (XCH) IPO?

US Tiger Securities, Inc. acted as the sole underwriter for XCHG 's (XCH) initial public offering.