SINGAPORE - Tungray Technologies Inc (NASDAQ:TRSG), a Singapore-based provider of customized manufacturing solutions, has raised an additional $5.41 million through its initial public offering (IPO) after US Tiger Securities, Inc. exercised a partial over-allotment option. The underwriter purchased an extra 103,485 Class A ordinary shares at the IPO price of $4.00 per share, bringing the total number of shares sold in the IPO to 1,353,485.
The company specializes in engineering-to-order (ETO) services for various industries, including semiconductors, printers, electronics, and home appliances. With over two decades of experience, Tungray has established itself as a significant player in the design and development of industrial products such as manufacturing machinery and welding equipment.
US Tiger, serving as the sole book-runner for the offering, facilitated the additional share sale. Legal counsel for the transaction was provided by Robinson & Cole LLP for Tungray and VCL Law LLP for the underwriter.
The additional funds raised before underwriting discounts and other related expenses are expected to support the company's ongoing research, development, and manufacturing initiatives. The offering was made possible through a registration statement filed with the Securities and Exchange Commission (SEC) and declared effective on March 28, 2024.
This news is based on a press release statement from Tungray Technologies Inc.
InvestingPro Insights
Tungray Technologies Inc (NASDAQ:TRSG) has demonstrated a strong financial performance with a significant return over the past week, as the company's stock price surged by 29.5%. This rally is part of a broader trend, with Tungray also posting a robust 25.04% return over the last three months, reflecting investor confidence in the company's market position and growth potential.
Investors examining the company's fundamentals will find that TRSG holds a market capitalization of $111.6 million, underscoring its presence in the manufacturing solutions sector. Despite a challenging revenue growth rate in the last twelve months as of Q1 2023, which saw a decrease of 12.07%, the company has managed to maintain a strong gross profit margin of 46.9%. This indicates efficient cost management and a solid business model capable of sustaining profitability.
An InvestingPro Tip that stands out for TRSG is its liquidity position, as the company holds more cash than debt on its balance sheet. This financial stability is crucial for supporting ongoing research and development efforts, which are essential for maintaining competitiveness in the engineering-to-order services industry. Moreover, TRSG's liquid assets exceed its short-term obligations, providing further evidence of the company's sound financial health.
For readers interested in deeper analysis, there are additional InvestingPro Tips available on the company's profile, including insights into TRSG's valuation multiples and stock volatility. To access these tips and more, visit https://www.investing.com/pro/TRSG and use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 13 additional InvestingPro Tips that can provide investors with an edge in their decision-making process.
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