XCHG Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

XCHG , a global leader in integrated EV charging solutions, has announced the pricing of its initial public offering (IPO) on the Nasdaq Global Market. The company is offering 3,333,335 American Depositary Shares (ADSs) at US$6.2 per ADS, raising approximately US$20.7 million. Each ADS represents 40 Class A ordinary shares of XCHG The ADSs are expected to begin trading under the ticker symbol 'XCH' on September 10, 2024, with the offering closing on September 11, 2024. US Tiger Securities, Inc. is the sole underwriter and has been granted an option to purchase up to 500,000 additional ADSs within 30 days. The IPO marks a significant milestone for XCHG as it enters the public market.

Positive

• Successful pricing of IPO, raising approximately US$20.7 million
• Listing on Nasdaq Global Market, increasing visibility and potential investor base
• Potential for additional capital if underwriter exercises over-allotment option

Negative

• Potential dilution of existing shareholders' equity
• Market risks associated with newly listed companies
• Relatively small offering size may limit liquidity

Insights

Financial Analyst

XCHG 's IPO pricing at $6.2 per ADS, raising approximately $20.7 million, marks a significant milestone for the EV charging solutions provider. The modest offering size suggests a cautious approach to public markets, possibly reflecting current investor sentiment towards cleantech stocks. The low price point could attract retail investors but might indicate conservative valuation by underwriters. The over-allotment option for additional ADSs provides flexibility to meet demand. Listing on Nasdaq Global Market offers visibility, but the company will face scrutiny on its growth trajectory and path to profitability in a competitive sector. Investors should monitor post-IPO performance and the company's ability to utilize funds for expansion in the rapidly evolving EV infrastructure market.

Tech Expert

XCHG's public debut underscores the growing investor interest in EV charging infrastructure. As a "global leader in integrated EV charging solutions," the company is well-positioned to capitalize on the accelerating EV adoption trend. However, the competitive landscape is intensifying with both established players and startups vying for market share. XCHG's success will hinge on its technological differentiation, ability to scale and strategic partnerships with automakers and energy providers. The IPO proceeds could fuel R&D efforts in areas like fast-charging technology, smart grid integration and user-friendly interfaces. Investors should assess XCHG's product roadmap and its alignment with evolving industry standards and consumer preferences in the EV charging space.

Market Research Analyst

XCHG's IPO timing aligns with the burgeoning EV market, especially in Europe where the company is headquartered. The global EV charging infrastructure market is projected to grow at a CAGR of over 30% in the coming years, driven by government initiatives and automaker commitments. However, XCHG faces stiff competition from both established players and well-funded startups. The relatively small IPO size may limit the company's ability to aggressively expand in key markets. Investors should monitor XCHG's market share growth, particularly in high-potential regions like North America and China. Key success factors will include strategic partnerships, technological innovation and the ability to navigate complex regulatory landscapes across different markets.

HAMBURG, Germany, Sept. 10, 2024 (GLOBE NEWSWIRE) -- XCHG Limited (“XCharge” or the “Company”) (NASDAQ: XCH), a global leader in integrated EV charging solutions, today announced the pricing of its initial public offering of 3,333,335 American Depositary Shares (“ADSs”), at US$6.2 per ADS, for a total offering size of approximately US$20.7 million, assuming the underwriter does not exercise its over-allotment option to purchase additional ADSs. Each ADS represents 40 Class A ordinary shares, par value $0.00001 per share, of the Company. The ADSs have been approved for listing and are expected to begin trading on the Nasdaq Global Market today under the ticker symbol “XCH.” The offering is expected to close on September 11, 2024, subject to customary closing conditions.

In addition, the Company has granted the underwriter an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 500,000 additional ADSs at the initial public offering price.

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 is the IPO price for XCHG (XCH) shares?

XCHG has priced its initial public offering at US$6.2 per American Depositary Share (ADS).

How many shares is XCHG (XCH) offering in its IPO?

XCHG is offering 3,333,335 American Depositary Shares (ADSs) in its initial public offering.

When will XCHG (XCH) start trading on the Nasdaq?

XCHG 's ADSs are expected to begin trading on the Nasdaq Global Market on September 10, 2024, under the ticker symbol 'XCH'.

How much capital is XCHG (XCH) raising through its IPO?

XCHG is raising approximately US$20.7 million through its initial public offering.

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

US Tiger Securities, Inc. is acting as the sole underwriter for XCHG 's initial public offering.