Hong Kong Pharma prices IPO at $4 per share

Net proceeds will be used to enhance its supply chain systems and purchase warehouse equipment.

Hong Kong Pharma Digital Technology Holdings Limited has priced its initial public offering (IPO) of 1,403,685 ordinary shares at $4 per share.

Of the total, 1,000,000 shares are being offered by Hong Kong Pharma, and 403,685 shares are being sold by existing shareholders.

The offering is expected to raise $4m in gross proceeds before underwriting discounts and other expenses. The Company will not receive proceeds from shares sold by the selling shareholders.

Trading is expected to begin on 15 January 2025, under the ticker symbol "HKPD" on the Nasdaq Capital Market. The offering is expected to close on 16 January 2025, subject to customary conditions.

Hong Kong Pharma expects net proceeds of approximately $2.9, from the offering, or approximately $3.5m if the over-allotment option is fully exercised, after underwriting discounts and estimated offering expenses. The company plans to use the net proceeds to enhance its supply chain systems, purchase warehouse equipment, expand its sales and marketing team, and fund general corporate purposes.

Bancroft Capital, LLC is serving as the lead underwriter for the offering, with Eddid Securities USA Inc. acting as a co-underwriter. Bevilacqua PLLC is the U.S. securities counsel to the Company, and Ortoli Rosenstadt LLP is the U.S. securities counsel to the lead underwriter.

The offering was registered with the SEC under Form F-1 (File No. 333-282876), declared effective on 20 December 2024.