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How Chinese Companies in the US have been enabled with IPO success

As per a recent report by CNBC, it has been found that Lichen China Limited has offered an Initial Public Offering on Nasdaq of about $16 Million. In this case, Ortoli Rosenstadt LLP represented Lichen China Limited on their 16$ Billion listing with the Nasdaq Stock Market.

Lichen China Limited is a specialized taxation and financial service provider based out of China. Recently, it announced its plan for closing its initial public offering (IPO) of 4,000,000 Class A ordinary shares at a public price of $4 per share. However, the trading of Class A Ordinary Shares on the Nasdaq Capital Market began on 6th February 2023. Considering the number of its operating subsidiaries it is found that Lichen China Limited is one of the leading financial and taxation services providers in China, who continue to operate as a dedicated financial taxation solution services specialist in China for over 18 years.

Their main areas of focus are in terms of;

  • Financial and Taxation Solution Services;

  • Education Support Services;

  • Software Maintenance Services.

Thus, looking in terms of leveraging their relations with local educational institutions and their expertise in terms of the financial taxation solution services market and developing financial taxation training analysis software. Also, at the same time, the company offers software products to enterprise customers, universities, colleges, and educational institutions. Lichen’s IPO had a significant sense of the first small-cap IPO which operated based upon being listed with Nasdaq in 2023. Coming to 2023, some uncertainties were found within the market conditions at the time of the ongoing tense geopolitical environment between the US and China.

Interactions between Lichen and the Nasdaq Stock Market

Lichen had engaged with Ortoli Rosenstadt to represent the US Counsel for their IPO in the Nasdaq Stock market. As both partners had to closely work with the company on dealing with all aspects of the IPO, that included their prospectus, application to Nasdaq, and response to the questions that were given by the regulators with other transacting documents with the underwriter and their counsel.

At the same time, a crucial deal was being structured to be worked with the company and the regulators. In this case, the market conditions went on to change at the end of the process, as the market conditions changed significantly when the first IPO effort was launched by Lichen. However, the company’s counsel had to pull out every trick concerning the sleeves to come up with legal solutions to make sure the regulators assure the company’s consideration for approval.

Skills and operational expertise that was earned by the team of company

As business lawyers must dissect the laws and the regulations that come from the end of the business owners, where a lawyer must support the role of the business owner to serve the needs of the business owner, making sure the business decisions are legally compliant. Thus, the main aim, in this case, is to solve the day-to-day problems and provide practical solutions. Also, to deal with companies in Asia, most of the staff of the company need to be multi-lingual and spend a significant amount of time working in Asia. This becomes quite necessary at the time when one goes on to work with regulators. As this is not only meant for serving as lawyers but as a voice when the profile is being presented to the regulators and the investor community.

Thus, in terms of anticipating potential issues, there arises a situation where the experience of dealing with such issues requires to be followed by a standard protocol to streamline the processes. In addition to this, there can also be unpredictable circumstances in terms of a process and the standard protocol.

Thus, coming at this point it can be very well understood that China remains to be the largest market and will continue to be so in the times to come shortly. Finally, the launching of the Singapore office of the company will also help in the expansion of the company’s footprint in and around parts of Asia. Very recently the firm has opened its offices in the South East Asian countries of Singapore, Malaysia, Thailand, Indonesia, and Vietnam, which could also reach as far as Australia taking the point of the closeness of the time difference that prevails. In a way, this will also allow the firm to ensure services for overseas clients who work all around the world abiding by the clock.

Sources Referred




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