What's Going On With Recently Listed Security Services Company SU Group Shares Today?

SU Group Holdings Ltd SUGP shares are trading higher today after its recent initial public offering. However, the current stock is still below its debut price. 

The company’s shares began trading on the Nasdaq Capital Market on January 24, 2024, under the symbol “SUGP.”

The company priced its initial public offering of 1.25 million ordinary shares at $4.00 on January 23, 2023. Earlier, the company intended to price its initial public offering in the $4.00-$5.00 range.

SU Group is an integrated security-related services company that primarily provides security-related engineering services, security guarding and screening services, and related vocational training services in Hong Kong.

The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable, is projected to be $5.0 million. 

In addition, SU Group has granted the underwriters a 30-day option to purchase up to an additional 187,500 ordinary shares at the public offering price, less underwriting discounts.

Also, the company issued to the underwriters warrants to purchase up to 71,875 ordinary shares (5% of the number of shares sold) during the four-and-a-half-year period starting six months from the closing of the offering. 

The offering is expected to be completed today, subject to the satisfaction of customary closing conditions. 

SU Group expects to use the net proceeds from the sale of the shares to boost its penetration of the security-related engineering services industry, enhance product offerings, expanding security guarding services, among others.

Price Action: SUGP shares are trading up 5.77% at $3.2999 on the last check Friday.

Image: Shutterstock/ Andrii Yalanskyi