Office equipment and supply company EShallgo Inc. (EHGO) priced its micro-cap IPO at $4.00 – the low end of its range – and sold 1.25 million shares – the number of shares in the prospectus – to raise $5.0 million on Monday night, July 1, 2024. The price range was $4.00 to $6.00. EShallGo’s stock opened flat at $4.00 at 11:45 a.m. EDT in its NASDAQ debut on volume of 195,668 shares, according to NASDAQ records. EShallGo’s stock slid to an intraday low of $2.70 shortly after 1 p.m. EDT and retraced a few steps to trade at $2.82 at around 1:20 p.m. EDT on volume of more than 676,500 shares for the session so far. This tiny IPO was one of just two deals set to price during the Fourth of July holiday week. (Editor’s Note: This column, published early Tuesday, July 2, 2024, was updated with the SPAC IPO pricing details on Eureka Acquisition.)
US Tiger Securities and Kingswood Capital Partners were the joint book-runners.
EShallGo is the holding company of Junzhang Shanghai, a Chinese company that leases and sells office equipment and supplies. Junzhang Shanghai, is an authorized distributor of major brands of office equipment, including HP, Epson, Xerox, Sharp, Toshiba, Konica, Kyocera and other brands. The business has expanded since its start in 2015 to include office furniture, IT products and all other supplies that offices may need. The company also provides maintenance and repair services. Junzhang Shanghai has 20 subsidiaries across China, the prospectus says. Its clients include China’s Ping An Insurance.
For the 12 months that ended Sept. 30, 2023, EShallGo was profitable – with net income of $0.52 million on revenue of $17.47 million, according to the prospectus.
Eureka Acquisition Prices $50 Million SPAC IPO
Just ahead of the Fourth of July holiday break, the SPAC IPO parade kicked off with Eureka Acquisition Corp. (EURKU) pricing its $50 million deal on Monday night, July 1, 2004. Eureka Acquisition priced 5.0 million units at $10.00 each – as expected – to raise $50.0 million after the closing bell on July 1 – to trade Tuesday, July 2, 2024 – on the NASDAQ. Eureka Acquisition’s stock opened at $10.05, hit an intraday high of $10.07, and traded at $10.06 on volume of more than 2 million shares at around 1:20 p.m. EDT today – Tuesday, July 2, 2024. Each unit consisted of one share of common stock and one right to one-fifth of a share upon consummation of the initial business combination.
At pricing, Eureka Acquisition became the first SPAC IPO priced in July and the third quarter – and the 17th SPAC IPO priced so far in 2024..
Maxim Group was the sole book-runner.
Eureka Acquisition Corp., based on Grand Cayman, intends to focus its search on target businesses operating in Asia. The SPAC says it “may consummate a business combination with an entity located in the People’s Republic of China, including Hong Kong and Macau,” according to the prospectus.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
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