ALE Group Holding, which provides accounting and corporate consultancy services to SMBs in China, lowered the proposed deal size for its upcoming IPO on Monday. In its latest filing, the company also replaced sole bookrunner Univest Securities with Prime Number Capital.
ALE Group originally filed a form F-1 with the SEC in June 2020, planning to raise capital in a self-underwritten, best efforts offering and list on the OTC. In July 2021, the company disclosed in a post-effective amendment (POS AM) that it now planned to raise capital in an underwritten, firm commitment offering and list on the Nasdaq; it has since provided updates through additional POS AM filings.
The Hong Kong-based company now plans to raise $6 million by offering 1.3 million shares at a price range of $4 to $6. The company had most recently filed to offer 4.2 million shares at a range of $4 to $6. At the midpoint, ALE Group Holding will raise 70% less in proceeds than previously anticipated.
Operating in Hong Kong through its wholly-owned subsidiary ALECS, the company provides accounting and corporate consultancy services to small and medium-sized businesses (SMBs), including financial reporting, general corporate consultancy, pre-auditing and going public consultancy, corporate secretarial services, tax filing services, and internal control advisory. As of September 30, 2022, ALECS retained 299 client engagements, all of which were located in Hong Kong and mainland China, though its goal is to expand throughout Asia as well as into the US.
ALE Group Holding was founded in 2014 and booked $2 million in revenue for the 12 months ended September 30, 2022. It plans to list on the Nasdaq under the symbol ALEH. Prime Number Capital is the sole bookrunner on the deal.
