Park Ha Biological Technology Set to Launch IPO, Offering 1.2 Million Shares at $4.00 Each on Nasdaq

Company Overview

Park Ha Biological Technology Co., Ltd. has announced the pricing of its initial public offering (IPO) of 1,200,000 ordinary shares, priced at $4.00 each. The total amount the company aims to raise is $4.8 million. These shares will be listed on the Nasdaq Capital Market under the ticker symbol “PHH.” Trading is anticipated to start on December 27, 2024, with the closing expected around December 30, 2024, pending standard conditions. The capital raised will be directed towards expanding retail presence in China, acquiring product patents, and sourcing ingredient suppliers to reduce production costs. The underwriters for this IPO are Dawson James Securities, Inc. and D. Boral Capital LLC, with legal guidance from Ortoli Rosenstadt LLP and Hunter Taubman Fischer & Li LLC. Founded in 2016, Park Ha primarily focuses on private skincare labels and direct sales, currently maintaining two stores and 43 franchise locations in China.

Strengths of the Offering

• The IPO will likely enhance the company’s market visibility and credibility.
• Listing on the Nasdaq provides access to a broader investor base.
• The expected $4.8 million in proceeds could support expansion efforts and improve operational efficiency through acquisitions.
• The underwriters have the option to buy additional shares, showing confidence in demand.

Challenges Ahead

• Raising $4.8 million might indicate limited interest from investors or doubts about growth prospects.
• The company’s financial success depends on various uncertain elements, including the IPO’s completion and potential discrepancies between forecasts and actual results.
• With just two company-operated and 43 franchised stores, concerns about competitive ability in the skincare market post-IPO are valid.

Frequently Asked Questions

What is the public offering price for Park Ha’s shares?

The public offering price for Park Ha’s shares is $4.00 per ordinary share.

When will Park Ha’s shares begin trading?

Park Ha’s shares are expected to commence trading on December 27, 2024.

How much gross proceeds is Park Ha expecting from the Offering?

Park Ha expects to receive aggregate gross proceeds of $4.8 million from the Offering.

What will the proceeds from the Offering be used for?

The proceeds will be used to expand stores, purchase product patents, and acquire ingredient suppliers.

Who are the underwriters for Park Ha’s Offering?

Dawson James Securities, Inc. and D. Boral Capital LLC are acting as underwriters for the Offering.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

Full Release

Wuxi, China, Dec. 26, 2024 (GLOBE NEWSWIRE) — Park Ha Biological Technology Co., Ltd. (the “Company”), dedicated to developing private skincare labels and enhancing direct sales, has announced the pricing of its initial public offering (the “Offering”) of 1,200,000 ordinary shares at $4.00 per share. The shares have received approval for listing on the Nasdaq Capital Market and are expected to trade starting December 27, 2024, under the ticker symbol “PHH.”

The Company anticipates raising gross proceeds of $4.8 million from the Offering, prior to underwriting discounts and other expenses. Additionally, the underwriters have been granted a 45-day option to purchase up to 180,000 additional ordinary shares at the offering price. The Offering is expected to close on or around December 30, 2024, provided customary closing conditions are met.

Net proceeds will be allocated to (i) expanding the number of directly-operated stores in China, (ii) acquiring existing product patents to foster proprietary developments, and (iii) engaging ingredient suppliers to lower long-term production costs.

The Offering will be conducted on a firm commitment basis. Dawson James Securities, Inc. and D. Boral Capital LLC serve as underwriters, while Ortoli Rosenstadt LLP and Hunter Taubman Fischer & Li LLC represent the legal interests corresponding to the Offering.

A registration statement on Form F-1 related to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-281783) and was declared effective on December 20, 2024. The Offering is being issued solely through a prospectus that is part of the registration statement. Copies of the prospectus may be obtained from Dawson James Securities, Inc. or D. Boral Capital LLC, along with additional information via the SEC’s website.

Prior to investing, individuals should consult the prospectus and any other documents the Company has filed or will file with the SEC for comprehensive information about the Company and the Offering. This press release serves informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities, nor should it be interpreted as such in jurisdictions where such offers would be unlawful without appropriate registration or qualification under state laws.

About Park Ha Biological Technology Co., Ltd.

Founded in 2016, Park Ha Biological Technology Co., Ltd. focuses on developing private skincare labels, direct product sales, and franchise promotions under the “Park Ha” brand. The company aims to provide cost-effective solutions to skincare issues while enhancing customer confidence, particularly among women needing skin treatment. As of April 30, 2024, Park Ha operates two directly managed stores and 43 franchises, with the majority operating under the “Park Ha” and “Geni” names in China. The company also offers a “light beauty experience,” a complimentary service aimed at adding value to its product offerings.