Street Calls of the Week
TOKYO - Japanese youth sports education company LEIFRAS Co., Ltd. (NASDAQ:LFS) announced Friday it has closed its initial public offering of 1.25 million American Depositary Shares at $4.00 per share, raising $5 million in gross proceeds. According to InvestingPro data, the stock has experienced significant volatility since its debut, with shares currently trading at $3.77.
The Tokyo-based company’s shares began trading on the Nasdaq Capital Market on Thursday under the ticker symbol "LFS." Each ADS represents one ordinary share of the company.
Leifras has granted underwriters a 45-day option to purchase up to an additional 187,500 ADSs to cover over-allotments at the public offering price.
The company plans to use the proceeds to invest in human resources to expand market share, secure additional sports facilities, hire part-time staff for both its sports school and social businesses, and for working capital. The company maintains strong fundamentals, with a healthy gross profit margin of 30% and annual revenue of $65.7 million. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, supporting its expansion plans.
Kingswood Capital Partners, LLC acted as the representative of the underwriters for the offering, which was conducted on a firm commitment basis.
Leifras operates children’s sports schools and sports events across Japan, with a teaching approach that emphasizes both physical skills and non-cognitive development. The company also dispatches sports coaches to meet various community needs, aiming to promote physical health and social inclusion.
The IPO was made through a registration statement that was declared effective by the U.S. Securities and Exchange Commission on September 29, according to the company’s press release statement. For deeper insights into LEIFRAS’s financial health and growth potential, InvestingPro subscribers have access to over 10 additional exclusive tips and comprehensive financial metrics.
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