ZJK Industrial Co., Ltd. Announces Pricing of Initial Public Offering

Rhea-AI Summary

ZJK Industrial Co., , a high-tech enterprise specializing in precision fasteners and metal parts for new energy vehicles and intelligent electronic equipment, has announced the pricing of its initial public offering (IPO). The company is offering 1,250,000 ordinary shares at US$5.00 per share, aiming to raise US$6.25 million in gross proceeds. The shares are set to begin trading on the Nasdaq Capital Market under the ticker symbol "ZJK" on September 30, 2024.

The IPO is expected to close around October 1, 2024, with underwriters granted a 30-day option to purchase up to 187,500 additional shares. Proceeds will fund manufacturing expansion, North American sales network growth, potential acquisitions, and general corporate purposes. Cathay Securities, Inc. is leading the underwriting, with Revere Securities and Dominari Securities also participating.

Positive

• IPO expected to raise US$6.25 million in gross proceeds
• Shares to be listed on Nasdaq Capital Market, enhancing visibility and liquidity
• Proceeds to be used for manufacturing expansion and sales network growth
• Potential for acquisitions and strategic investments in the fasteners field

Negative

• Potential dilution of existing shareholders' ownership
• Uncertainty regarding market reception and post-IPO stock performance
• Additional expenses related to being a public company

Insights

Financial Analyst

ZJK Industrial Co.'s IPO pricing at $5.00 per share for 1,250,000 ordinary shares is a significant milestone. With expected gross proceeds of $6.25 million, this IPO provides important capital for expansion and strategic initiatives. The firm commitment underwriting suggests confidence in the offering.

Key points to consider:

• Listing on Nasdaq Capital Market enhances visibility and liquidity
• Planned use of proceeds focuses on growth: expanding manufacturing and sales network
• Potential acquisitions in the fasteners field signal strategic expansion
• 30-day option for additional 187,500 shares could increase total proceeds

While the $6.25 million raise is relatively modest, it's important for a company specializing in precision parts for high-growth sectors like EVs and electronics. Investors should monitor how effectively ZJK leverages this capital for expansion and whether it can capitalize on opportunities in the North American market.

Market Research Analyst

ZJK Industrial's IPO taps into two booming sectors: new energy vehicles and intelligent electronic equipment. The company's focus on precision fasteners and metal parts positions it well in these high-growth industries.

Market implications:

• Growing EV market presents significant opportunities for suppliers
• Expansion into North America aligns with reshoring trends and demand for local supply chains
• Precision parts are important for advancing technologies in electronics

The IPO's timing coincides with increased interest in EV-related stocks. However, investors should consider the competitive landscape and ZJK's ability to differentiate itself. The 15% overallotment option suggests some flexibility in gauging market demand. Watch for post-IPO performance as an indicator of investor appetite for companies in this space.

09/30/2024 - 12:00 PM

Shenzhen, China, Sept. 30, 2024 (GLOBE NEWSWIRE) -- ZJK Industrial Co., Ltd. (the “Company”), a high-tech enterprise specialized in manufacturing and sale of precision fasteners, structural parts and other precision metal parts products for new energy vehicles and intelligent electronic equipment, today announced the pricing of its initial public offering (the “Offering”) of 1,250,000 ordinary shares at a price to the public of US$5.00 per ordinary share. The ordinary shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on September 30, 2024, under the ticker symbol “ZJK.”

The Company expects to receive aggregate gross proceeds of US$6.25 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 187,500 ordinary shares at the initial public offering price, less underwriting discounts and commissions. The Offering is expected to close on or about October 1, 2024, subject to the satisfaction of customary closing conditions.

Net proceeds from the Offering will be used for (i) expanding the Company’s manufacturing facilities, (ii) expanding sales network in North America, (iii) potential acquisitions of, or investment in, businesses in the field of fasteners, and (iv) general corporate purposes and working capital, including potential strategic investments and acquisitions.

The Offering is being conducted on a firm commitment basis. Cathay Securities, Inc., acting as the representative of the underwriters, Revere Securities LLC and Dominari Securities LLC are the underwriters (collectively, the “Underwriters”) for the Offering. Robinson & Cole LLP is acting as the U.S. counsel to the Company, and VCL Law LLP is acting as the U.S. counsel to the Underwriters in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-280371), as amended, was declared effective by the SEC on September 27, 2024. The Offering is being made only by means of a prospectus, forming a part of the registration statement. Copies of the prospectus relating to the Offering may be obtained, when available, from Cathay Securities, Inc. by email at service@cathaysecurities.com, by standard mail to Cathay Securities, Inc., 40 Wall Street, Suite 3600, New York, NY 10005, or by telephone at +1 (855) 939-3888; or from Revere Securities LLC by email at contact@reveresecurities.com, by standard mail to Revere Securities LLC, 560 Lexington Avenue, 16th Floor, New York, NY 10022, or by telephone at +1 (212) 688-2350. In addition, copies of the prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

Before you invest, you should read the registration statement and the preliminary prospectus contained therein and the final prospectus, when available, and other documents the Company has filed or will file with the SEC for more complete information about the Company and the Offering. This press release does 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 such state or jurisdiction.

About ZJK Industrial Co., Ltd.

ZJK Industrial Co., Ltd. is a high-tech enterprise specialized in manufacturing and sale of precision fasteners, structural parts and other precision metal parts products applied in a variety of industries, including intelligent electronic equipment, new energy vehicles, aerospace, energy storage systems and liquid cooling systems used in artificial intelligence supercomputers. With about twelve-year involvement in precision metal parts manufacturing industry, the Company has owned a professional team, a series of highly automated and precise manufacturing equipment, stable and strong customer group, and complete quality management systems. It mainly offers standard screws, precision screws and nuts, high-strength bolts and nuts, turning and Computer Numerical Control (CNC) machining parts, Surface Mounting Technology for miniature parts packaging; and technology service for research and development from professional engineering team. For more information, please visit the Company's website at https://ir.zjk-industrial.com/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions in this announcement and the registration statement. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

ZJK Industrial Co., Ltd.
Phone: +86-0755-28341175
Email: ir@zjk-industrial.com

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

FAQ

What is the IPO price for ZJK Industrial Co., (ZJK) shares?

ZJK Industrial Co., has priced its initial public offering at US$5.00 per ordinary share.

How many shares is ZJK Industrial Co., (ZJK) offering in its IPO?

ZJK Industrial Co., is offering 1,250,000 ordinary shares in its initial public offering.

When will ZJK Industrial Co., (ZJK) shares start trading on Nasdaq?

ZJK Industrial Co., shares are expected to commence trading on the Nasdaq Capital Market on September 30, 2024, under the ticker symbol 'ZJK'.

What are the planned uses for the IPO proceeds of ZJK Industrial Co., (ZJK)?

ZJK Industrial Co., plans to use the IPO proceeds for expanding manufacturing facilities, growing its North American sales network, potential acquisitions in the fasteners field, and general corporate purposes.