HONG KONG - New Century Logistics (BVI) Limited, an international logistics and freight forwarding provider, has announced the successful closing of its initial public offering (IPO) on the Nasdaq Capital Market. The company, which began trading under the ticker NCEW, offered 1,500,000 ordinary shares at a price of $4.00 each, raising total gross proceeds of $6 million before deducting underwriting discounts and other related expenses. According to InvestingPro analysis, the stock appears overvalued at current levels, with a Price-to-Book ratio of 14.7x suggesting a premium valuation compared to industry peers.
The IPO, which commenced trading on Wednesday, was executed on a firm commitment basis. Additionally, New Century granted the underwriters a 45-day option to purchase up to an additional 225,000 shares to cover over-allotments if necessary.
The company plans to allocate the net proceeds from the offering towards business expansion, technological innovation, enhancing warehousing and distribution capabilities, hiring new personnel, and general working capital purposes. The company maintains a strong financial position with a notably low debt-to-capital ratio of 0.05 and an Altman Z-Score of 7.1, indicating robust financial health. For deeper insights into New Century's growth potential and financial metrics, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis.
Craft Capital Management LLC and R.F. Lafferty & Co., Inc. acted as co-lead managing underwriters for the offering. Legal counsel was provided by Sichenzia Ross Ference Carmel LLP for New Century Logistics and Hunter Taubman Fischer & Li LLC for the underwriters.
The offering was made possible following the effectiveness of a registration statement on Form F-1 filed with the U.S. Securities and Exchange Commission (SEC), which became effective on November 20, 2024. The company also filed a post-effective amendment No. 1 and No. 2 to the registration statement on November 29, 2024, and December 9, 2024, respectively, with the latter being declared effective by the SEC on December 13, 2024.
New Century Logistics facilitates import and export goods arrangements for clients, which includes selling cargo space, cargo pick-up, security screening, palletization, shipping documentation preparation, customs clearance, and cargo handling at ports. The company primarily generates revenue from air freight export shipments across North America, Europe, and Asia. Financial data from InvestingPro shows the company's return on assets at 3.4%, with analysts forecasting an EPS of $0.09 for FY2024. Unlock comprehensive valuation analysis and growth projections with an InvestingPro subscription.
This article is based on a press release statement and contains forward-looking statements. These statements serve as projections and are subject to risks, uncertainties, and assumptions. Actual results may differ materially from those projected.
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