The IPO Buzz: Lianhe Sowell International Group (LHSW) Prices IPO at $4 – Low End

Lianhe Sowell International Group Ltd. (LHSW), the parent of a machine vision products and solutions company in China, priced its IPO at $4.00  – the low end of its $4.00-to-$5.00 range – and raised $8.0 million on Wednesday night, April 2, 2025. Shares of Lianhe Sowell International Group opened today – Thursday, April 3 – at $5.30 – up $1.30 for a 32.5 percent gain from their IPO price – at noon EDT on the NASDAQ on volume of 96,395 shares. Lianhe Sowell’s stock touched its session high at $8.18 at about 12:20 p.m. EDT today – scoring a moonshot in its NASDAQ debut while the major U.S. stock indexes plunged on investors’ fear of the tariffs unveiled yesterday by President Trump. The NASDAQ Composite Index slid about 803 points – or 4.56 percent – after noon EDT today while the blue-chip Dow Jones Industrial Average dropped 1,104.84 points – down 2.62 percent – and the Standard & Poor’s 500 Index lost 193.92 points – or 3.42 percent – from Wednesday’s close in the selloff driven by fear that the tariffs’ impact could trigger a recession. 

In contrast, Lianhe Sowell held onto most of its gains. By 12:40 p.m. EDT, Lianhe Sowell’s stock was trading at $5.80 – up $1.80 o4 45 percent on volume of about 701,300 shares. 

R.F. Lafferty & Co. served as the sole book-runner.

The Shenzhen, China-based company intends to use the IPO’s net proceeds to invest in its machine vision business as well as to expand its spray painting robot business and fund research and development (R&D) as well as for other general corporate purposes, according to the prospectus. The holding company is incorporated in the Cayman Islands.

“We invent and integrate technologies and solutions that address some of the most critical manufacturing and distribution challenges, such as precision and accuracy required in the manufacturing of electronic products,” Lianhe Sowell International Group Ltd. said in the prospectus.

The company is profitable, according to financial statements in the prospectus. Lianhe Sowell International Group Ltd. reported net income of $2.82 million and revenue of $36.6 million for the fiscal year that ended March 31, 2024. 

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