CCSC Tech Closes $5.5M IPO, Deposits $200K Escrow for Underwriters

TL;DR

**CCSC Tech just closed its IPO, raising $5.5M and setting aside $200K for underwriter protection.**

AI Summary

CCSC Technology International Holdings Ltd (CCTG) closed its Initial Public Offering (IPO) on January 22, 2024, selling 1,375,000 ordinary shares at $4.00 per share, raising $5.5 million before expenses. The company also deposited $200,000 into an escrow account with Wilmington Trust, National Association, to cover potential indemnification claims against the underwriters, led by Revere Securities, LLC, for 12 months. This matters to investors because it signifies the successful completion of CCTG's public debut, providing capital for the company's operations and establishing its market valuation.

Why It Matters

The successful closing of the IPO provides CCSC Technology International Holdings Ltd with capital for growth and operations, while the escrow agreement protects underwriters from potential liabilities, ensuring a smoother transition to public trading.

Risk Assessment

Risk Level: medium — The company is newly public, and while the IPO is complete, the $200,000 escrow for indemnification claims indicates potential future liabilities or risks associated with the offering.

Analyst Insight

Investors should view the successful IPO closing as a positive step, providing capital for the company. Monitor future filings for how the $5.5 million in proceeds are being deployed and for any updates regarding the indemnification escrow.

Key Numbers

• $5.5M — Gross IPO Proceeds (Total capital raised from the IPO before expenses (1,375,000 shares * $4.00/share))
• 1,375,000 — Ordinary Shares Sold (Number of shares offered and sold in the IPO)
• $200,000 — Escrow Deposit (Amount set aside to cover potential indemnification claims against underwriters)
• 12 months — Escrow Period (Duration for which the escrow funds will be held to cover claims)
• January 22, 2024 — IPO Closing Date (The date the initial public offering officially closed)

Key Players & Entities

• CCSC Technology International Holdings Ltd (company) — the company that completed the IPO
• Revere Securities, LLC (company) — representative of the underwriters for the IPO
• Wilmington Trust, National Association (company) — the escrow agent for the $200,000 deposit
• $200,000 (dollar_amount) — amount deposited into escrow for indemnification claims
• January 22, 2024 (date) — date the IPO closed and escrow agreement was entered
• January 17, 2024 (date) — date the underwriting agreement was entered
• 1,375,000 (number) — number of ordinary shares sold in the IPO
• $0.0005 (dollar_amount) — par value per share
• $4.00 (dollar_amount) — offering price per share
• $5.5 million (dollar_amount) — total gross proceeds from the IPO

Forward-Looking Statements

• CCSC Technology International Holdings Ltd will utilize the IPO proceeds to fund its growth initiatives and expand operations. (CCSC Technology International Holdings Ltd) — high confidence, target: 2025-01-22
• The $200,000 escrow account will remain largely untouched over the next 12 months, indicating a low likelihood of significant indemnification claims against the underwriters. (Revere Securities, LLC) — medium confidence, target: 2025-01-22

FAQ

Key Financial Figures

• $200,000 — greement with respect to the deposit of $200,000 of the offering proceeds into an escrow
• $0.0005 — f 1,375,000 ordinary shares, par value $0.0005 per share (the “Ordinary Shares&r
• $4.00 — ely. The Ordinary Shares were priced at $4.00 per share and the IPO was conducted on

Filing Documents

• ea192054-6k_ccsctech.htm (6-K) — 14KB
• ea192054ex1-1_ccsctech.htm (EX-1.1) — 390KB
• ea192054ex1-2_ccsctech.htm (EX-1.2) — 124KB
• ea192054ex99-1_ccsctech.htm (EX-99.1) — 14KB
• ea192054ex99-2_ccsctech.htm (EX-99.2) — 14KB
• ex99-1_001.jpg (GRAPHIC) — 4KB
• 0001213900-24-005830.txt ( ) — 562KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CCSC TECHNOLOGY INTERNATIONAL HOLDINGS LIMITED Date: January 23, 2024 By: /s/ Kung Lok Chiu Name: Kung Lok Chiu Title: Chief Executive Officer 2 EXHIBIT INDEX Exhibit No. Description 1.1 Underwriting Agreement dated January 17, 2024 1.2 Escrow Agreement dated January 22, 2024 99.1 Press Release on Pricing of the Company’s Initial Public Offering 99.2 Press Release on Closing of the Company’s Initial Public Offering 3

View Full Filing

View this 6-K filing on SEC EDGAR