IPO - SunCar Technology Group Inc.

Form Type: 424B5

Filing Date: 2025-02-06

Corporate Action: Ipo

Type: New

Accession Number: 000121390025010989

Filing Summary: SunCar Technology Group Inc. is offering 7,142,858 Class A Ordinary Shares at a public offering price of $7.00 per share, amounting to a total offering size of $50,000,000. The Class A shares are listed on The Nasdaq Capital Market under the symbol 'SDA'. As of February 5, 2025, the last reported sale price was $8.44 per share. The company is classified as an emerging growth company and complies with reduced public company reporting requirements. SunCar operates primarily as a holding company based in the Cayman Islands with its businesses conducted through subsidiaries in China. The document discusses various risks related to regulatory approvals in China, including anti-monopoly actions, cybersecurity issues, and the potential impact of the PCAOB's ability to inspect the company's auditors. Additionally, it outlines challenges concerning cash transfers and dividend distribution between the holding company and its PRC operating entities, emphasizing the complexities imposed by Chinese regulations on foreign investments. The prospectus also highlights the lack of PCAOB inspections which could lead to delisting from U.S. stock exchanges if unaddressed. The underwriting section mentions an option for underwriters to purchase up to 1,071,429 additional shares.

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