Rainbow Capital Holdings sets IPO price range for Class A shares
Investing.com -- Rainbow Capital Holdings Limited (RCHL), a holding company incorporated in the British Virgin Islands, has filed an initial public offering (IPO) with the Securities and Exchange Commission. The company plans to offer 1,375,000 Class A ordinary shares with a par value of US$0.0001 each. Post-IPO, public shareholders will hold 9.24% of these shares, assuming the underwriter does not exercise the over-allotment option.
The anticipated IPO price for the Class A Ordinary Shares is expected to be between US$4 and US$5 per share. Prior to the IPO, there has been no public market for RCHL's Class A Ordinary Shares. The company plans to list these shares on the Nasdaq Capital Market under the ticker symbol "RNBW". The IPO is dependent on the successful listing of the Class A Ordinary Shares on Nasdaq, and there is no guarantee that the application will be approved.
RCHL's issued share capital consists of a dual-class structure, which includes Class A Ordinary Shares and Class B Ordinary Shares. Only Class A Ordinary Shares are being offered in this IPO. After the IPO, RCHL will have 14,875,000 Class A Ordinary Shares issued and outstanding. If the underwriter fully exercises its over-allotment option, this number could increase to 15,081,250 Class A Ordinary Shares. Additionally, there will be 3,000,000 Class B Ordinary Shares issued and outstanding. The two classes of shares have the same rights except for voting rights. Each Class A Ordinary Share is entitled to one vote, while each Class B Ordinary Share is entitled to twenty votes.
RCHL is a holding company with no material operations and conducts all of its operations through its operating entity, Rainbow Capital (HK) Limited, a company incorporated in Hong Kong. Investors in the Class A Ordinary Shares will not directly hold equity interests in the operating subsidiary, but rather in RCHL. This structure carries unique risks, and there is a possibility that the People's Republic of China's regulatory authorities could disallow this structure. This could result in significant changes in RCHL's operations and the value of the securities it is registering for sale, potentially leading to a significant decline in value or even rendering them worthless. Shareholders may also face difficulties enforcing their legal rights under United States securities laws against directors and officers located outside of the United States.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.