Shares of Hong Kong’s fish egg supplier Top Wealth Group Holding Ltd (NASDAQ: TWG) skyrocketed on Friday after the company announced a US$10.8-million-dollar public offering.
The offering, consisting of 27 million shares at US$0.40 apiece, is expected to close by Monday. Florida’s AC Sunshine Securities LLC is acting as the sole placement agent in connection with the transaction, the company says.
Those interested in purchasing shares from the offering will need to do so through that American financial firm. Top Wealth’s common stock rose by over 238 per cent on the Nasdaq to US$7.14 following the announcement.
Top Wealth is focused on supplying high-grade sturgeon caviar to customers in Hong Kong and abroad. The company owns the Imperial Cristal Caviar brand, which it established in 2021.
Imperial Cristal Caviar sells product obtained from China, Italy and France that comes from five different varieties of sturgeon fish. Top Wealth’s subsidiary sells caviar that has been aged 10, 12, 15 and 18 years.
Many desire to ingest the salt-cured fish eggs because of the health benefits they offer. These include enhanced cognitive function, improved immunity and clearer skin.
Generally speaking, sturgeon caviar is expensive, costing about US$1,500 to US$3,000 per kilogram. Imperial Cristal currently sells a single can of Amur Beluga sturgeon caviar for US$38.63.
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Public offering follows non-compliance notification
Prior to the immense share spike, Top Wealth had been failing to meet the Nasdaq exchange’s US$1.00 minimum share requirement.
The exchange issued the company a non-compliance notification in August. It explained that Top Wealth had until Jan. 26 next year to regain compliance. Though it hasn’t been specified, Thursday’s offering is likely significantly linked to fixing this issue.
Top Wealth completed its initial public offering in April this year with 2 million shares at US$4.00 apiece. It was first established in 2009.
In 2023, the caviar supplier’s revenue increased by more than 99 per cent year-over-year to US$16.9 million.
Researchers have estimated that the global caviar market will grow substantially in the coming years. It is expected to have a compound annual growth rate ranging between 7.5 and 10 per cent for the remainder of the decade. The market is currently valued at about US$420 million.
China is the number one caviar producer, providing approximately 60 per cent of the global supply.
rowan@mugglehead.com
