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

Rhea-AI Summary

YXT.com Group Holding , a leader in China's digital corporate learning industry, has priced its initial public offering (IPO) of 2,273,000 American depositary shares (ADSs) at $11.00 per ADS. The total offering size is approximately $25 million. Each ADS represents three Class A ordinary shares. Trading is expected to begin on August 16, 2024, on the Nasdaq Global Market under the ticker symbol 'YXT'. The offering is set to close on August 19, 2024. Underwriters have a 30-day option to purchase up to 340,950 additional ADSs. Kingswood Capital Partners, and Tiger Brokers (NZ) are acting as underwriters, with Kingswood as the representative.

Positive

• IPO priced at $11.00 per ADS, raising approximately $25 million
• Listing on Nasdaq Global Market, increasing visibility and liquidity
• Underwriters have option to purchase additional ADSs, potentially increasing offering size

Negative

• Potential dilution of existing shareholders' ownership
• Market volatility may affect stock performance post-IPO

Financial Analyst

YXT.com's IPO pricing at $11.00 per ADS, raising approximately $25 million, marks a significant milestone for the Chinese digital corporate learning company. The modest offering size suggests a cautious approach to public markets, possibly due to current market conditions or the company's growth stage. With 2,273,000 ADSs offered, representing 6,819,000 Class A ordinary shares, the company's valuation and public float remain relatively small. The additional option for underwriters to purchase up to 340,950 ADSs could provide some flexibility in managing demand. Investors should note that as a Chinese company, YXT.com may face regulatory risks both in China and the US. The choice of Nasdaq Global Market for listing indicates the company's ambition for international visibility, but also subjects it to stringent reporting requirements.

Market Research Analyst

YXT.com's positioning as a "leader and disruptor" in China's digital corporate learning industry suggests a potentially lucrative market opportunity. The e-learning sector has seen significant growth, accelerated by the pandemic, making this IPO timely. However, investors should be cautious about the competitive landscape and YXT.com's actual market share. The ticker symbol "YXT" aligns with the company's brand, which could aid in investor recognition. The involvement of Tiger Brokers as an underwriter may help attract Asian investors familiar with the platform. The pricing at $11.00 per ADS seems strategic, balancing accessibility for retail investors with a valuation that doesn't undervalue the company. Keep an eye on the post-IPO performance to gauge market reception and potential for future growth in this evolving sector.

Legal Expert

The regulatory landscape for YXT.com's IPO is complex, given its status as a Chinese company listing on a US exchange. The SEC's effective declaration of the registration statement is crucial, indicating compliance with US securities laws. However, investors should be aware of the ongoing tensions between US and Chinese regulators regarding auditing standards for foreign companies. The disclaimer about not constituting an offer to sell in certain jurisdictions is standard legal protection. The option for underwriters to purchase additional ADSs within 30 days is a typical over-allotment provision, providing price stability post-IPO. Prospective investors should carefully review the final prospectus for risk factors, particularly those related to VIE structures often used by Chinese companies and potential regulatory changes that could impact YXT.com's operations or investor protections.

SUZHOU, China, Aug. 16, 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 the pricing of its initial public offering of 2,273,000 American depositary shares (“ADSs”), at US$11.00 per ADS, for a total offering size of approximately US$25 million, assuming the underwriters do not exercise their option to purchase additional ADSs. Each ADS represents three Class A ordinary shares of the Company. The ADSs have been approved for listing and are expected to begin trading on the Nasdaq Global Market on August 16, 2024, under the ticker symbol “YXT.” The offering is expected to close on August 19, 2024, subject to customary closing conditions.

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 are acting as underwriters for the offering. Kingswood Capital Partners, LLC is acting 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 is being 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

What is the IPO price for YXT.com Group Holding (YXT)?

YXT.com Group Holding has priced its IPO at $11.00 per ADS (American Depositary Share).

How much money is YXT.com (YXT) raising through its IPO?

YXT.com is raising approximately $25 million through its initial public offering, assuming underwriters don't exercise their option to purchase additional ADSs.

When will YXT.com (YXT) start trading on the Nasdaq?

YXT.com is expected to begin trading on the Nasdaq Global Market on August 16, 2024, under the ticker symbol 'YXT'.

How many ADSs is YXT.com (YXT) offering in its IPO?

YXT.com is offering 2,273,000 American depositary shares (ADSs) in its initial public offering.