FangDD Network Group Ltd. (NASDAQ: DUO) has recently observed a notable increase in its stock prices, a development attributed to the successful execution of its substitution listing plan.
As of the latest pre-market check, shares of DUO were trading at $4.39, reflecting a substantial rise of 29.50%. This follows a preceding gain of 9.35%, which concluded the previous session at $3.39, indicating a robust investor sentiment surrounding the company.
Execution of Substitution Listing
This week, FangDD Network (DUO) implemented its substitution listing plan, having previously announced its intention to delist its American depositary shares (ADSs) from The Nasdaq Capital Market.
The Bank of New York Mellon has acted as the depositary for the company’s ADSs throughout this process. Following the delisting, FangDD listed its Class A ordinary shares, previously represented by the ADSs, for trading on Nasdaq on September 30, 2024. Each ADS corresponds to one Class A ordinary share, with a par value of $0.0005625.
Details of the Exchange Process
In preparation for the substitution listing, the Depositary mandated the surrender of all ADSs to facilitate their exchange into the company’s Class A ordinary shares. The exchange process commenced on the designated Exchange Date, marking the beginning of trading for FangDD’s Class A ordinary shares on Nasdaq, while trading of the ADSs was subsequently suspended.
New Equity Offering
In addition to the substitution listing, FangDD has engaged in a securities purchase agreement with select investors to issue and sell 1,612,902 Class A ordinary shares at a price of $1.55 per share through a registered direct offering. The Purchase Agreement encompasses standard representations, warranties, and other provisions typical for transactions of this nature.
The offering is anticipated to close around October 2, 2024, contingent upon meeting customary closing conditions. FangDD intends to allocate the net proceeds from this offering for general corporate purposes, with MM Global Securities, Inc. appointed as the exclusive placement agent for the transaction.
