Prestige Wealth, a Hong Kong-based wealth and asset management services provider, lowered the proposed deal size for its upcoming IPO on Friday. In its latest filing, the company also replaced sole bookrunner Network 1 Financial Securities with Revere Securities.
The Hong Kong-based company now plans to raise $6 million by offering 1 million shares at a price range of $5 to $6. The company previously revised its terms in February, planning to offer 2 million shares at a range of $4 to $5. At the midpoint of the revised range, Prestige Wealth will raise 39% less in proceeds than previously anticipated.
Because the company is expected to have a post-IPO market cap of less than $50 million, Prestige Wealth will be excluded from Renaissance Capital's 2023 IPO stats.
Through its operating subsidiaries, Prestige Wealth provides wealth management and asset management services primarily to high net worth and ultra-high net worth individuals in Asia, with many of its clients residing in mainland China and Hong Kong. The company's asset management subsidary, PAI, acts as an investment advisor and fund manager for clients and in exchange, receives certain fees for managing and advising a fund. Its wealth management services consist of a network of brokers (licensed in Hong Kong and the US), which distributes insurance products, while also providing referrals for trust lawyers, tax accountants, and education planning. In the FY22, Prestige received a majority of its revenue from its wealth management subsidiaries.
Prestige Wealth was founded in 2018 and booked $2 million in revenue for the 12 months ended September 30, 2022. It plans to list on the Nasdaq under the symbol PWM. Revere Securities is the sole bookrunner on the deal.
