Youxin Technology Ltd Announces Closing of $10.35 Million Initial Public Offering

Rhea-AI Summary

Youxin Technology (Nasdaq: YAAS), a SaaS and PaaS provider focused on retail enterprise digital transformation, has completed its initial public offering of 2,300,000 Class A ordinary shares at $4.50 per share, raising gross proceeds of $10.35 million. Trading began on Nasdaq Capital Market on December 20, 2024, under ticker 'YAAS'. The company granted underwriters a 45-day option to purchase up to 345,000 additional shares.

The net proceeds will fund: (1) R&D for SaaS product development and cloud services enhancement, (2) sales and marketing expansion, including distribution channel growth, and (3) general corporate purposes including potential strategic investments and acquisitions. Aegis Capital Corp. served as the sole book-running manager for the offering.

Positive

• Successfully raised $10.35 million through IPO
• Achieved Nasdaq listing, increasing market visibility
• Clear allocation strategy for funds focused on growth and expansion
• 45-day option for additional share purchase could bring extra capital

Negative

• Relatively small IPO size might limit growth potential
• Potential dilution for existing shareholders
• Additional share option could cause further dilution if exercised

Insights

Financial Analyst

The IPO of Youxin Technology marks a notable development in the SaaS/PaaS sector, raising $10.35 million through the offering of 2.3 million Class A ordinary shares at $4.50 per share. The relatively modest IPO size suggests this is a small-cap growth play in the Chinese enterprise software market. The planned allocation of funds towards R&D and sales/marketing infrastructure indicates a growth-focused strategy. However, investors should note that Chinese tech IPOs have faced heightened scrutiny and volatility in recent years. The underwriting by Aegis Capital, while providing legitimacy, represents a tier-2 investment bank, which is typical for smaller offerings. The 45-day option for additional shares could provide some price stability in early trading, though the small float may lead to significant price volatility.

Tech Industry Analyst

Youxin's focus on digital transformation tools for retail enterprises positions it in a rapidly growing market segment in China. The SaaS and PaaS offerings target a critical need as traditional retailers seek to modernize operations. The planned R&D investment in cloud services and standard SaaS products suggests a strategic push to expand their technology stack. This IPO, while modest in size, provides essential capital for product development in a competitive market. The emphasis on expanding distribution channels indicates awareness of the need to scale quickly in China's vast retail market. However, success will depend heavily on execution and differentiation in a crowded field of both domestic and international enterprise software providers.

Guangzhou, China, Dec. 23, 2024 (GLOBE NEWSWIRE) -- Youxin Technology Ltd (Nasdaq: YAAS) (the “Company” or “Youxin Technology”), a software as a service (“SaaS”) and platform as a service (“PaaS”) provider committed to helping retail enterprises digitally transform their businesses, today announced the closing of its initial public offering (the “Offering”) of 2,300,000 Class A ordinary shares at a public offering price of US$4.50 per Class A ordinary share. The Class A ordinary shares began trading on The Nasdaq Capital Market on December 20, 2024 under the ticker symbol “YAAS.”

The Company received aggregate gross proceeds of US$10.35 million from the Offering, before deducting underwriting discounts and other related expenses payable by the Company. In addition, the Company has granted the underwriters a 45-day option to purchase up to 345,000 additional Class A ordinary shares at the public offering price, less underwriting discounts.

Net proceeds from the Offering will be used for (i) research and development, including development of the Company’s SaaS standard product and further investment in the Company’s cloud services, (ii) investment in the Company’s sales and marketing, including expanding distribution channels for existing and future market, and (iii) general corporate purposes, which may include capital expenditures, potential strategic investments and acquisitions.

Aegis Capital Corp. acted as the sole book-running manager for the Offering. Kaufman & Canoles P.C. acted as the U.S. counsel to the Company, and Olshan Frome Wolosky LLP acted as the U.S. counsel to Aegis Capital Corp.

A registration statement on Form F-1 (File No. 333-274404) relating to the Offering was filed with the U.S. Securities and Exchange Commission (“SEC”) and was declared effective by the SEC on December 19, 2024. A final prospectus describing the terms of the proposed offering was filed with the SEC and is available on the SEC’s website at www.sec.gov. The Offering was made only by means of a prospectus, forming a part of the registration statement. Electronic copies of the final prospectus may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th Floor, New York, New York 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010.

This press release 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 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 any such state or jurisdiction.

About Youxin Technology Ltd

Youxin Technology Ltd is a SaaS and PaaS provider committed to helping retail enterprises digitally transform their businesses using its cloud-based SaaS product and PaaS platform to develop, use and control business applications without the need to purchase complex IT infrastructure. Youxin Technology provides a customized, comprehensive, fast-deployment omnichannel digital solutions that unify all aspects of commerce with store innovations, distributed inventory management, cross-channel data integration, and a rich set of ecommerce capabilities that encompass mobile applications, social media, and web-based applications. The Company’s products allow mid-tier brand retailers to use offline direct distribution to connect the management team, distributors, salespersons, stores, and end customers across systems, apps, and devices. This provides retailers with a comprehensive suite of tools to instantly address issues using real-time sales data. For more information, please visit the Company’s website: https://ir.youxin.cloud.

Cautionary Note Regarding Forward-Looking Statements

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation the Company’s statements regarding the Company’s product development and business prospects and the use of proceeds from the sale of the Company’s shares in the Offering, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

For more information, please contact:

Youxin Technology Ltd.
Investor Relations Department
Email: ir@youxin.cloud

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

FAQ

How much did Youxin Technology (YAAS) raise in its December 2024 IPO?

Youxin Technology raised $10.35 million in gross proceeds through its IPO, offering 2,300,000 Class A ordinary shares at $4.50 per share.

What is the trading symbol and exchange for Youxin Technology's IPO?

Youxin Technology trades on the Nasdaq Capital Market under the ticker symbol 'YAAS'.

How will Youxin Technology (YAAS) use its IPO proceeds?

The proceeds will be used for R&D of SaaS products and cloud services, expanding sales and marketing channels, and general corporate purposes including potential strategic investments and acquisitions.

What is the size of the additional share option granted to YAAS underwriters?

Underwriters received a 45-day option to purchase up to 345,000 additional Class A ordinary shares at the public offering price.

When did YAAS stock begin trading on Nasdaq?

YAAS began trading on the Nasdaq Capital Market on December 20, 2024.