The IPO Buzz: J-Long Prices IPO at $5.00 Mid-Point & SU Group Prices IPO at $4.00 – Low End

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Two Hong Kong companies – J-Long Group (JL) and SU Group Holdings (SUGP) – priced their small IPOs on Tuesday night (Jan. 23, 2024):

  • –J-Long Group (JL) priced its IPO in sync with the terms in its prospectus – 1.4 million shares at $5.00 – the mid-point of its $4.00-to-$6.00 range – to raise $7.0 million. Eddid Securities USA was the sole book-runner.

  • –SU Group Holdings (SUGP) priced its IPO of 1.25 million shares at $4.00 – the low end of its $4.00-to-$5.00 range – to raise $5.0 million. The Benchmark Company was the sole book-runner.

SU Group Holdings (SUGP) opened at $4.38, up 38 cents or up 9.5 percent from its IPO price, at 10:20 a.m. EST on Wednesday (Jan. 24, 2024) on the NASDAQ. Volume was slightly more than 200,000 shares.

J-Long Group (JL) started trading at $7.50 – up $2.50 or up 50 percent from its $5.00 IPO price – at 10:45 a.m. EST on Wednesday (Jan. 24, 2024)  on the NASDAQ. Volume was slightly more than 63,000 shares.

These two small deals are the first IPOs to get priced during the last full week of January. They have one more thing in common: Both companies are profitable.

Another seven IPOs are on this week’s IPO Calendar. Three big IPOs are getting most of the attention. Two cancer biotech IPOs –  CG Oncology (CGON proposed) and ArriVent BioPharma (AVBP proposed) – are expected to get priced this week. The huge IPO of KKR-backed Brightspring Health Services (BTSG proposed) is also set for pricing this week. Bankers expect to raise about $1.37 billion this week – if everything on the IPO Calendar gets priced.

Reflective Garment Trim Maker’s IPO

J-Long Group Ltd. (JL) is the parent of a Hong Kong company, JLHK, which manufactures and distributes reflective and non-reflective garment trims. The company has been an authorized distributor of 3M Scotchlite reflective materials since 2000. The Cayman Islands holding company offered the stock in the IPO – and not the underlying Hong Kong business.

The IPO pricing at the $5.00 mid-point gives J-Long Group Ltd. a valuation – or a market cap – of $157.0 million.

The company offered all of the stock in the IPO.

In addition, selling shareholders have registered to sell 8.91 million shares pursuant to a resale prospectus. Those selling shareholders are Capital Summit Enterprises Limited, Cherish Gloss Group Limited, Jipsy Trade Limited, Max Premier Enterprises Limited, Summer Explorer Investments Limited and Wise Total Solutions Group Limited.

J-Long Group is profitable. The company reported net income of $6.66 million on revenue of $38.29 million for the fiscal year that ended March 31, 2023.

Security Firm’s IPO

SU Group Holdings Ltd. (SUGP) is a Hong Kong holding company whose subsidiaries specialize in security-related engineering, guard services, screening and vocational training services. 

SU Group Holdings Limited runs its business through its subsidiaries, Shine Union and Fortune Jet, to provide security-related engineering services. Its business includes, to a lesser extent, security guard and screening services as well as related training services, the prospectus says.

Shine Union, established in 1998, has been involved in projects that include the design, supply, installation and/or maintenance of X-ray machines at a rail link terminus and the air cargo terminal at Hong Kong International Airport; the traffic control system and ELV system at the bridge-tunnel system connecting Hong Kong, Macau and Zhuhai, and the pedestrian control system at the headquarters office building of a Hong Kong-based banking and financial services company.

SU Group Holdings says that since its acquisition of Fortune Jet in 2019, the company has provided security guard and screening services, along with related vocational training services.

SU Group Holdings Limited is profitable. The company reported net income of $1.98 million on revenue of $20.98 million for the 12 months that ended March 31, 2023.

(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)

Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.

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Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

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