YXT.com Group Holding Limited Announces Closing of Initial Public Offering

Rhea-AI Summary

YXT.com Group Holding announced the closing of its initial public offering (IPO), raising approximately US$25.0 million in gross proceeds. The offering included 2,273,000 American depositary shares (ADSs) at US$11.00 per ADS, each representing three Class A ordinary shares. The ADSs began trading on the Nasdaq Global Market under the ticker symbol YXT on August 16, 2024.

The underwriters, Kingswood Capital Partners, , and Tiger Brokers (NZ) , have an option to purchase up to 340,950 additional ADSs within 30 days from the final prospectus date. The company plans to use the offering proceeds to expand its market presence in the digital corporate learning industry in China.

The registration statement for the offering was declared effective by the United States Securities and Exchange Commission (SEC). For more information, contact Kingswood Capital Partners,

Positive

• Raised approximately US$25.0 million in gross proceeds.
• IPO successfully closed with ADSs trading on Nasdaq under YXT.
• Potential for additional proceeds with the option to purchase up to 340,950 additional ADSs.

Negative

• Underwriting discounts and commissions will reduce net proceeds.

Financial Analyst

YXT.com's IPO marks a significant milestone for the Chinese digital corporate learning industry. The company raised $25 million in gross proceeds, pricing 2,273,000 ADSs at $11 each. This successful listing on Nasdaq under the ticker 'YXT' demonstrates investor confidence in the e-learning sector's growth potential. However, the relatively modest IPO size suggests a cautious approach, possibly due to current market conditions or the company's growth stage. The 30-day option for underwriters to purchase additional ADSs could provide extra liquidity if exercised. Investors should monitor how YXT.com utilizes these funds to fuel expansion and maintain its market position amidst fierce competition in China's tech-education landscape.

Market Research Analyst

YXT.com's IPO reflects the growing interest in China's digital learning market, estimated to reach $78 billion by 2025. As a 'leader and disruptor,' YXT.com is well-positioned to capitalize on this trend, especially given the increased adoption of online corporate training post-pandemic. However, investors should be aware of potential regulatory risks in China's education sector. The company's choice to list on Nasdaq, rather than domestic exchanges, might be strategic for international expansion but could also expose it to U.S.-China tensions. The modest IPO size may limit immediate market impact, but it provides a foundation for future growth and sets a benchmark for valuations in the sector.

Legal Expert

The successful completion of YXT.com's IPO indicates compliance with SEC regulations, a important factor for Chinese companies listing in the U.S. The company's clear disclaimer about offer limitations and the availability of the prospectus demonstrate transparency and adherence to legal requirements. However, investors should note the ongoing regulatory scrutiny of Chinese companies in U.S. markets. The effectiveness of the registration statement is positive, but continuous compliance will be essential. The underwriters' option to purchase additional ADSs within 30 days provides flexibility but also requires careful monitoring of disclosure obligations. As always, potential investors should thoroughly review the prospectus for risk factors specific to YXT.com and the broader regulatory environment.

SUZHOU, China, Aug. 22, 2024 (GLOBE NEWSWIRE) -- YXT.com Group Holding Limited (“YXT.com” or the “Company”), a leader and disruptor of the digital corporate learning industry in China, today announced that its previously announced initial public offering (the “Offering”) of 2,273,000 American depositary shares (“ADSs”) at a price of US$11.00 per ADS closed on August 19, 2024. Each ADS represents three Class A ordinary shares of the Company. YXT.com’s ADSs began trading on the Nasdaq Global Market on Friday, August 16, 2024, under the ticker symbol “YXT.”

The Company raised a total of approximately US$25.0 million in gross proceeds from the Offering, before deducting underwriting discounts and commissions as well as other estimated offering expenses. In addition, the Company has granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 340,950 additional ADSs.

Kingswood Capital Partners, LLC, and Tiger Brokers (NZ) Limited acted as underwriters for the Offering. Kingswood Capital Partners, LLC acted as the representative of the underwriters.

A registration statement related to these 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 was made only by means of a prospectus forming a part of the effective registration statement. A copy of the final prospectus relating to the Offering may be obtained, when available, by contacting Kingswood Capital Partners, LLC at 126 E 56th St, 22nd Floor, New York, NY 10022, or by telephone at 800-535-6981 or by e-mailing info@kingswoodus.com.

About YXT.com
As a technology company, YXT.com provides corporations with digital corporate learning solutions, including SaaS platforms, learning content, and other services. YXT.com is a leader and disruptor of the digital corporate learning industry in China. Established in 2011, YXT.com has supported Fortune 500 companies and other leading companies with their transformation and digitalization of learning and development, and has received recognition, respect and recurring business.

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.

Contact
Robin Yang
ICR, LLC
YXT.IR@icrinc.com 
+1 (646) 405-4883

FAQ

When did YXT.com close its IPO?

YXT.com closed its IPO on August 19, 2024.

How many ADSs were included in YXT.com's IPO?

The IPO included 2,273,000 American depositary shares (ADSs).

What was the offering price for YXT.com's ADSs?

The offering price was US$11.00 per ADS.

On which market are YXT.com's ADSs trading and what is the ticker symbol?

YXT.com's ADSs began trading on the Nasdaq Global Market under the ticker symbol YXT.

How much did YXT.com raise from its IPO?

YXT.com raised approximately US$25.0 million in gross proceeds from its IPO.

Do the underwriters have an option to purchase additional ADSs?

Yes, the underwriters have an option to purchase up to 340,950 additional ADSs within 30 days from the date of the final prospectus.