(CapitalWatch, Dec. 5, Hong Kong) Small Hong Kong-based wealth manager Prestige Wealth Inc. has set the terms for its initial public offering on the Nasdaq Capital Market, seeking to raise about $16.25 million.
The subsidiaries of Prestige Wealth provide wealth and asset management services, serving a small number of high-net-worth individuals primarily in China and Hong Kong, growing its business via word-of-mouth marketing. In 2021, the company also branched out to the U.S., where it now generates nearly 100% of its wealth management revenues, according to the prospectus.
In the six months through March 2022, Prestige Wealth provided wealth management services to two clients and asset management services to five clients, with AUM of $5.0 million. In 2021, the company had two clients in the wealth and 21 clients in the asset business, with AUM of $4.6 million. It had witnessed negative impact from Covid-related travel restrictions during the periods.
Last year, Prestige Wealth booked $2.79 million in revenue, a 9% increase from 2020, on income of $1.91 million. In the half-year through March, the company generated $1.79 million in revenue, down 31% year-over-year, on income of $1.31 million, according to the securities filings.
Prestige Wealth plans to use the proceeds from its share sale for brand promotion, hiring new client managers, expansion of products and services, and general working capital.
The company is offering 2.5 million of its ordinary shares at the price range of $5.50 to $6.50 per share. The underwriter on the deal, Network 1 Financial Securities Inc., may acquire an additional 375,000 shares to cover over-allotments, if any. At the top of the expected range and including the greenshoe option, Prestige Wealth would raise $18.7 million in the IPO.
Prestige Wealth has applied to list under the ticker "PWM" on the Nasdaq.