SunCar announces $50 million follow-on public offering

NEW YORK - SunCar Technology Group Inc. (Nasdaq: SDA), a Chinese provider of cloud-based B2B auto services and auto e-insurance, has announced a follow-on public offering of up to $50 million of its Class A Ordinary Shares. The company also plans to offer the underwriters a 30-day option to purchase up to an additional $7.5 million of shares at the public offering price, minus the underwriting discount. According to InvestingPro data, SunCar currently has a market capitalization of $1.07 billion and trades at $10.30 per share.

The proceeds from the offering are earmarked for working capital and general corporate purposes. BTIG, LLC is the lead book-running manager for the offering, with Macquarie Capital Limited and Oppenheimer & Co. Inc. serving as joint bookrunners. The completion of the offering is subject to market and other conditions, and there is no certainty regarding the completion timing or the offering’s final terms.

SunCar’s offering is based on a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on June 3, 2024, and declared effective on June 14, 2024. A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC to provide further details about the offering.

Founded in 2007, SunCar has positioned itself as a leader in the B2B auto services market and the auto eInsurance market for electric vehicles in China. The company operates cloud-based platforms connecting drivers with auto services and insurance options through a network of sales partners. InvestingPro analysis reveals the company generated revenue of $407.45 million in the last twelve months, though it faces challenges with a modest gross profit margin of 10.8%. InvestingPro subscribers have access to over 7 additional key insights about SunCar’s financial health and market position.

This press release contains forward-looking statements, which should not be relied upon as representing SunCar’s views as of any date subsequent to the date of this press release. The actual results could differ from those projected due to various risks and market conditions. Further details on these risks are available in SunCar’s SEC filings and reports. For comprehensive analysis of SunCar’s financial health, valuation metrics, and growth potential, investors can access detailed reports and real-time updates through InvestingPro.

The information in this article is based on a press release statement and is intended to provide factual news without any endorsement of the claims.

In other recent news, SunCar Technology Group Inc. has reported notable developments. The company named Breaux Walker as Chief Strategy Officer, bringing his extensive experience in business development, corporate finance, and cross-border transactions to the role. Walker, who joined SunCar in March 2024, previously held leadership positions at Weild & Co., JMP Securities, and HRJ International.

In addition to executive changes, SunCar secured a lucrative contract with Walmart (NYSE:WMT) China for their 2025 Sam’s Club Premium Membership Car Wash Project. The deal, worth approximately 49 million RMB (USD 6.8 million), extends SunCar’s partnership with Walmart and allows the company to provide services to Sam’s Club members in 17 cities, including Shanghai and Shenzhen.

Furthermore, SunCar has received a Buy rating from BTIG, which highlights the company’s potential for significant growth in the B2B automotive services and eInsurance markets. BTIG’s analysis points to a total addressable market of around $143 billion in Mainland China, with SunCar currently holding about a 1% share in each of these markets. The research firm projects over 25% annualized growth for SunCar in the coming years. These recent developments underline the company’s ongoing momentum in the industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.