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Leishen Energy Holding, a Chinese clean-energy equipment provider for the oil and gas industry, has announced the pricing of its initial public offering of 1,375,000 ordinary shares at $4.00 per share. The company expects to raise $5.5 million in gross proceeds and will begin trading on the Nasdaq Capital Market on December 19, 2024, under the symbol ‘LSE’.
The underwriters have a 45-day option to purchase up to 206,250 additional shares. Proceeds will fund the construction of a high-tech manufacturing park in Nanjing, establish an R&D center, purchase equipment and technologies, expand presence in PRC Southwest oil and gas market, and strengthen working capital. The offering is expected to close on December 20, 2024.
Leishen Energy Holding, fornitore cinese di attrezzature per energia pulita destinate all’industria petrolifera e del gas, ha annunciato il prezzo della sua offerta pubblica iniziale di 1.375.000 azioni ordinarie a 4,00 dollari per azione. L’azienda prevede di raccogliere 5,5 milioni di dollari in proventi lordi e inizierà a essere quotata sul Nasdaq Capital Market il 19 dicembre 2024, con il simbolo ‘LSE’.
Gli underwriter hanno un’opzione di 45 giorni per acquistare fino a 206.250 azioni aggiuntive. I proventi serviranno a finanziare la costruzione di un parco manifatturiero ad alta tecnologia a Nanchino, creare un centro di ricerca e sviluppo, acquistare attrezzature e tecnologie, espandere la presenza nel mercato petrolifero e del gas del sud-ovest della RPC, e rafforzare il capitale circolante. Si prevede che l’offerta si chiuda il 20 dicembre 2024.
Leishen Energy Holding, proveedor chino de equipos de energía limpia para la industria del petróleo y gas, ha anunciado el precio de su oferta pública inicial de 1.375.000 acciones ordinarias a 4,00 dólares por acción. La empresa espera recaudar 5,5 millones de dólares en ingresos brutos y comenzará a cotizar en el Nasdaq Capital Market el 19 de diciembre de 2024, bajo el símbolo ‘LSE’.
Los suscriptores tienen una opción de 45 días para adquirir hasta 206.250 acciones adicionales. Los ingresos financiarán la construcción de un parque de fabricación de alta tecnología en Nanjing, establecer un centro de I+D, comprar equipos y tecnologías, expandir su presencia en el mercado de petróleo y gas del suroeste de China, y fortalecer el capital de trabajo. Se espera que la oferta se cierre el 20 de diciembre de 2024.
Leishen Energy Holding는 석유 및 가스 산업을 위한 중국의 청정 에너지 장비 공급업체로, 1,375,000주를 주당 4.00달러로 공모주를 가격 책정했다고 발표했습니다. 회사는 550만 달러의 총 수익을 올릴 것으로 예상하며, 2024년 12월 19일부터 ‘LSE’라는 기호로 나스닥 자본시장에서 거래를 개시할 예정입니다.
인수자는 45일 동안 최대 206,250주의 추가 주식을 구매할 수 있는 옵션을 갖습니다. 조달 자금은 난징에 고급 제조 공장을 건설하고, 연구 개발 센터를 설립하며, 장비와 기술을 구입하고, 중국 남서부의 석유 및 가스 시장에서의 존재감을 확대하고, 운전 자본을 강화하는 데 사용됩니다. 이 공모는 2024년 12월 20일에 마감될 것으로 예상됩니다.
Leishen Energy Holding, fournisseur chinois d’équipements d’énergie propre pour l’industrie pétrolière et gazière, a annoncé le prix de son offre publique initiale de 1.375.000 actions ordinaires à 4,00 dollars l’action. L’entreprise s’attend à lever 5,5 millions de dollars en produits bruts et commencera à être négociée sur le Nasdaq Capital Market le 19 décembre 2024, sous le symbole ‘LSE’.
Les souscripteurs ont une option de 45 jours pour acheter jusqu’à 206.250 actions supplémentaires. Les produits serviront à financer la construction d’un parc de fabrication haute technologie à Nankin, à établir un centre de R&D, à acheter des équipements et des technologies, à élargir la présence sur le marché pétrolier et gazier du sud-ouest de la RPC et à renforcer le fonds de roulement. L’offre devrait se clôturer le 20 décembre 2024.
Leishen Energy Holding, ein chinesischer Anbieter von sauberer Energietechnologie für die Öl- und Gasindustrie, hat die Preise für sein öffentliche Angebot von 1.375.000 Stammaktien zu je 4,00 US-Dollar bekannt gegeben. Das Unternehmen erwartet, 5,5 Millionen US-Dollar an Bruttoeinnahmen zu generieren, und wird am 19. Dezember 2024 unter dem Symbol ‘LSE’ am Nasdaq Capital Market gehandelt.
Die Underwriter haben eine 45-tägige Option, bis zu 206.250 zusätzliche Aktien zu kaufen. Die Einnahmen werden verwendet, um einen hochmodernen Produktionspark in Nanjing zu bauen, ein F&E-Zentrum einzurichten, Ausrüstungen und Technologien zu erwerben, die Präsenz im Öl- und Gasmarkt im Südwesten Chinas auszubauen und das Betriebskapital zu stärken. Das Angebot soll am 20. Dezember 2024 geschlossen werden.
Positive
- IPO will raise $5.5 million in gross proceeds
- Nasdaq Capital Market listing provides access to U.S. capital markets
- Clear allocation plan for proceeds including manufacturing facility and R&D center
- Expansion strategy into Southwest oil and gas market
Negative
- Relatively small IPO size of $5.5 million may limit growth potential
- Additional share option could lead to 15% dilution if exercised
- Heavy concentration in Chinese market poses regulatory risks
Insights
This $5.5 million IPO represents an unusually small public offering for a Nasdaq listing, raising concerns about the company’s scale and potential market impact. The pricing at $4.00 per share for 1.375 million shares positions Leishen Energy in the micro-cap category, which typically faces higher volatility and liquidity risks.
The planned use of proceeds focuses on infrastructure development and market expansion in China’s oil and gas sector, but the relatively modest capital raise may limit the scope of these initiatives. The company’s strategy to establish a high-tech manufacturing park and R&D center requires substantial capital investment, making the size of this IPO potentially insufficient for full execution of stated objectives.
Notable risk factors include the small float size, which could lead to significant price volatility and the company’s concentration in the Chinese market. The underwriting team of Dominari Securities and Revere Securities, while legitimate, are not top-tier investment banks, which may impact post-IPO institutional support and trading liquidity.
Leishen Energy’s market entry comes at a strategic time in China’s energy transition, where clean-energy equipment for oil and gas operations aligns with national environmental policies. However, the company faces intense competition from both domestic and international players in this space.
The focus on the Southwest oil and gas market in China represents a targeted regional strategy, but success will depend heavily on relationships with state-owned enterprises and the ability to compete with established players. The investment in smart manufacturing capabilities could provide technological differentiation, though the IPO proceeds may constrain the pace of innovation and market penetration.
The integration of clean-energy solutions in traditional oil and gas operations represents a growing market opportunity, but the company’s ability to capture significant market share with capital resources remains uncertain. The establishment of the R&D center could enhance competitive positioning, but development timelines and commercialization success are key risk factors.
Beijing, China, Dec. 18, 2024 (GLOBE NEWSWIRE) — Leishen Energy Holding Co., Ltd. (the “Company” or “Leishen Energy”) (Nasdaq: LSE), a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, today announced the pricing of its initial public offering (the “Offering”) of 1,375,000 ordinary shares (“Shares”) at a public offering price of $4.00 per Share. The Shares are expected to commence trading on the Nasdaq Capital Market on December 19, 2024, under the ticker symbol “LSE”.
The Company expects to receive aggregate gross proceeds of $5,500,000 from this Offering, before deducting underwriting discounts and commissions and offering expenses payable by the Company. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 206,250 Shares at the public offering price, less the underwriting discount.
The Company intends to use the net proceeds of the Offering for the construction of a high-tech manufacturing industrial park in the Nanjing Lishui High-tech Development Zone, PRC, for the establishment of its smart manufacturing and new energy R&D center, for the purchase of business equipment and other patented technologies, to strengthen and expand our presence in the PRC Southwest oil and gas market, and to bolster its working capital.
The Offering is expected to close on December 20, 2024, subject to the satisfaction of customary closing conditions.
Dominari Securities LLC is acting as lead underwriter and Revere Securities LLC as co-manager (collectively, the “underwriters) for the Offering. Sichenzia Ross Ference Carmel LLP is serving as U.S. counsel to the Company for the Offering, and VCL Law LLP is serving as counsel to the underwriters in connection with the Offering.
The Shares described above are offered by the Company pursuant to a registration statement on Form F-1, as amended (File Number: 333-282433), that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 18, 2024. The 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, when available, may be obtained from Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor New York, NY 10022, Attention: Eric Newman, or by calling (212) 393-4500 or emailing info@dominarisecurities.com or by logging on to the SEC’s website at www.sec.gov.
Before you invest, you should read the prospectus 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 shall 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 offers, solicitations or sales would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. Any offers, solicitations, or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
About Leishen Energy Holding Co., Ltd.
The Leishen Group was founded in 2007 and is a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, with a commitment to providing customers with high-performance, safe and cost-effective energy solutions. Our major lines of business include (i) sale of clean-energy industry; (ii) new energy production and operation; (iii) digitalization and integration equipment; and (iv) oil and gas engineering technical services. At present, the Group holds more than 70 patents and software copyrights, forming a comprehensive ecosystem of core technical capabilities. Currently, our business operations have expanded beyond the PRC to Central Asia, and Southeast Asia, and our service abilities and quality have been widely recognized and praised by foreign customers. Efficient, safe and energy-saving equipment combined with professional technical services have enabled our brand to gain positive attention and recognition from our customers and enabled us to become a well-known equipment and services provider in the oil and gas industry. For more information, please visit the Company’s website: www.r-egroup.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s share 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 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 “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. 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:
Leishen Energy Holding Co., Ltd.
Investor Relations Department
Email: ir@r-egroup.com
FAQ
What is the IPO price and number of shares for Leishen Energy (LSE)?
Leishen Energy’s IPO consists of 1,375,000 ordinary shares priced at $4.00 per share, with a total offering value of $5.5 million.
When will Leishen Energy (LSE) start trading on Nasdaq?
Leishen Energy (LSE) is expected to commence trading on the Nasdaq Capital Market on December 19, 2024.
How will Leishen Energy (LSE) use its IPO proceeds?
The proceeds will be used to build a manufacturing park in Nanjing, establish an R&D center, purchase equipment and technologies, expand in the Southwest oil and gas market, and strengthen working capital.
What is the underwriters’ option in Leishen Energy’s (LSE) IPO?
The underwriters have a 45-day option to purchase up to an additional 206,250 shares at the public offering price, less underwriting discount.
When is the expected closing date for Leishen Energy’s (LSE) IPO?
The IPO is expected to close on December 20, 2024, subject to customary closing conditions.
