0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
The Offer
Company Overview
Prestige Financial Holdings Group Limited, through its subsidiaries, is a Hong Kong-based supplier of wealth management and asset management services, with most of its companies' operations taking place in Hong Kong. The group subsidiaries help their clients find and buy well-suited wealth management solutions and products for worldwide asset management. High-net-worth and ultra-high-net-worth people in Asia make up the bulk of the subsidiaries' clients for both wealth managing and asset management services, and most of them are from mainland China or Hong Kong.
Key Highlights
Primary Offering: The total gross proceeds to the firm, before underwriting discounts and expenses, will be between USD 15,812,500 and USD 18,687,500 based on an offering price between USD 5.50 and USD 6.50 per Ordinary Share. Additionally, the business anticipates receiving USD 12,144,264 at USD 6.00 per share or around USD 14,236,764 if the underwriters fully practice their option to purchase additional shares.
Use of proceeds:
Dividend policy: Prestige Wealth Inc. distributed a cash dividend of about USD 1.16 million to other shareholders proportionately as of September 30, 2021, and Prestige Financial Holdings Group Limited decided to use the cash dividend owed by the company in the amount of approximately USD 2.34 million to counterbalance part of the loan principal and interest due to the company. PWM does not expect to pay any cash dividends soon since it plans to maintain all earnings after this cash dividend distribution to support the company's growth. Being a holding company, PWM's capacity to pay and declare dividends will be influenced by a variety of elements, including the receipt of funds from its PPWM and PAI subsidiaries in the British Virgin Islands. Money for PPWM comes from its subsidiaries PWM and PWAI, while funds for PAI come from its subsidiaries PAM, PGAM, and PGCI. If there are any cash dividends on the Ordinary Shares, they will be paid out in US dollars.
Industry and competitive analysis
Financial Highlights (Expressed in USD):
Key Management Highlights
Risk Associated (High)
Investment in the IPO of “PWM” is exposed to a variety of risks such as:
Conclusion
PWM's wealth management service revenue for the six months ended March 31, 2022, was USD 1,765,325, an increase of more than 400% over the same time in 2021. The income from such services climbed dramatically compared to the same time in 2021 when PWM started providing wealth management services to consumers in the U.S. market, making up most of the six-month period ending March 31, 2022. Although it is anticipated that PWM will have opportunities to expand using IPO funds, the success of the company's entire operation is dependent on the asset management industry and the overall Chinese economy’s performance in the upcoming time. With the ongoing COVID-19 pandemic has had a negative impact on the subsidiaries' operations, financial situation, and business, and it might continue to do so. The uncertainty brought by the current situation in the Chinese economy due to COVID-19 has made this IPO to be lesser attractive than normal times.
Hence, given the financial performance of the company for the six months ending March 31, 2022, decreased net income, current Chinese economic scenario, and associated risks “Prestige Wealth Inc (PWM)” IPO seems “Neutral" at the IPO price.
Disclaimer
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.
Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.
Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.