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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.
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