Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Magnitude International Ltd (NASDAQ:MAGH), a Singapore-based electrical installation service provider, began trading on the Nasdaq Capital Market on Tuesday at $3.80 per share, below its initial public offering price of $4.00.
The company had priced its IPO at $4.00 per share, offering a total of 2,200,000 ordinary shares for gross proceeds of $8.8 million before deducting underwriting discounts and offering expenses.
Of the total shares offered, Magnitude is selling 1,650,000 ordinary shares while an existing shareholder is offering 550,000 shares. The company will not receive any proceeds from the shares sold by the existing shareholder.
Bancroft Capital, LLC is serving as the sole underwriter for the offering.
Magnitude plans to use its portion of the proceeds for several strategic initiatives including expansion through acquisitions, joint ventures and strategic alliances. The funds will also support purchasing materials, workforce expansion, relocating to larger office space with additional storage facilities, and renting bigger dormitory accommodations for foreign workers.
Additionally, the company intends to invest in digitalizing its systems, upgrading equipment, and implementing software solutions such as enterprise resource planning and human resource systems. Remaining funds will be allocated to working capital and general corporate purposes.
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