Hywin Holding Ltd. (HYW) stock surged by 2.5% in the last trading close whereas the HYW stock continued to rise by 2.35% in the pre-market trading session. According to CIC, Hywin is China’s 3rd biggest third-party wealth management service provider, with a 7.5 percent share of the market of 2019 transaction volume. Wealth management, insurance brokerage, and asset management are our key offerings. The upstream and downstream solution platform of Hywin Holding supports clients through generations of wealth management, which is currently their largest market segment. This division promotes and distributes investment goods and funds that collect money privately and publicly.
What is happening?
On March 30, 2021, Deutsche Bank announced that they have been designated as depositary bank for Hywin Holdings NASDAQ-listed American Depositary Receipt scheme. The Bank with its wide range of customized services is expected to provide efficient services in assisting HYW for its ADR program. This recent initiative of HYW could be the reason behind the rise in HYW stock.
On March 26, 2021, HYW revealed the pricing of its 3,000,000 American Depositary Shares (ADS) initial offering, which was priced at US$10.00 per ADS. Each ADS was representing two of HYW’s ordinary Class A shares. On the same day, the ADSs started with trading on the NASDAQ Global Market under the ticker symbol “HYW.” Depending on the customary closing conditions, the offering was scheduled to close on March 30, 2021.
The Company has given the underwriters an option to buy up to 450,000 additional ADSs, exercisable within 45 days of the date of the final prospectus. Before deducting underwriting discounts and commissions and other offering expenses incurred by HYW, the gross proceeds from the offering to HYW are estimated to be about $30 million, exclusive of use of the underwriters’ option to buy additional stock. And the book runners for the offering are Network 1 Financial Securities, Alexander Capital and Valuable Capital Limited.