BEIJING - NaaS Technology Inc. (NASDAQ: NAAS), a prominent EV charging service provider in China, has announced a registered direct offering to a U.S. institutional investor, resulting in gross proceeds of approximately $6 million. The transaction involves the sale of roughly 4.76 million American Depositary Shares (ADS) and warrants to purchase an equivalent number of ADSs at a combined price of $1.26 per ADS and accompanying warrant.
The warrants, set at an exercise price of $1.49, will become exercisable six months post-issuance and are valid for five years from the initial exercise date. Subject to standard closing conditions, the deal is expected to finalize around March 15, 2024.
This capital raise comes under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). Details of the offering will be outlined in a prospectus supplement filed with the SEC.
NaaS Technology Inc. is recognized as the first U.S. listed EV charging service company in China, operating as a subsidiary of NewLink Technology Limited. The company boasts a significant market presence, with connections to over 767,000 chargers across nearly 74,000 charging stations as of September 30, 2023.
This news is based on a press release statement.
InvestingPro Insights
Following the announcement of NaaS Technology Inc.'s registered direct offering, InvestingPro data and insights provide a deeper look into the company's financial health and market performance. With a market capitalization of $364.39 million, NaaS stands as a considerable player in the EV charging service sector in China. Despite a remarkable revenue growth rate of 258.99% over the last twelve months as of Q3 2023, the company's aggressive expansion has yet to yield profitability, as reflected by a negative P/E ratio of -3.86.
Investors should note that NaaS's stock has experienced significant volatility, with a 13.74% return over the last week yet a 67.47% decline over the past year. This high price volatility is characteristic of the company's trading pattern, as indicated by the recent price fluctuations.
Two key InvestingPro Tips for NaaS Technology Inc. include analysts' anticipation of sales growth in the current year and the company's quick cash burn rate. While the growth prospects may be promising, the cash burn rate is a critical factor for investors to consider, especially in the context of the company's recent capital raise. Additionally, with the stock trading at a high Price / Book multiple of 15.81, valuation concerns may arise.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available for NaaS Technology Inc. at InvestingPro. To access these insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.