SunCar Technology Group and Its $50 Million Follow-On Public Offering Initiative

SunCar Technology Group's Ambitious Move in the Auto Sector

On February 4, 2025, SunCar Technology Group Inc. (Nasdaq: SDA), a pioneering company in the realm of cloud-based B2B auto services and e-insurance in China, revealed plans for a significant follow-on public offering aimed at raising an impressive $50 million via the issuance of Class A Ordinary Shares. This strategic maneuver reflects SunCar's proactive approach to capitalizing on its strong market position and further enhancing its operational capabilities.

The Details of the Offering

The public offering includes an option for underwriters to acquire an additional $7.5 million worth of Class A Ordinary Shares, allowing potential buyers to purchase at the offered price minus underwriting discounts. The company has stated that the proceeds from this offering will primarily be utilized for working capital and broader corporate purposes.

Leading the charge as the book-running manager for this offering is BTIG, LLC, while Macquarie Capital Limited and Oppenheimer & Co. Inc. are designated as joint bookrunners. Although the closing of this proposed offering hinges on market conditions, SunCar is optimistic about successfully completing the transaction.

Previous Registration and Regulatory Compliance

The securities linked to this offering are being made available under an existing shelf registration statement filed with the SEC. This registration statement had been lodged on June 3, 2024, and subsequently received approval on June 14, 2024. SunCar's offerings are governed by strict SEC regulations, requiring the issuance of a preliminary prospectus supplement alongside an accompanying prospectus that details the terms and conditions of the offering. Interested investors will have access to these documents at no charge via the SEC’s website.

About SunCar Technology Group

Founded in 2007, SunCar has positioned itself as a transformative player in the customer journey related to auto services and insurance within China, notably the world’s largest consumer vehicle market. Through innovative cloud-based platforms, the company connects drivers seamlessly with numerous services and insurance coverage options by leveraging a wide network of sales partners. SunCar is particularly recognized for its dominance in the B2B auto services sector and its groundbreaking e-insurance offerings tailored for electric vehicles.

The company’s intelligent cloud platform not only enables enterprise clients to manage their customer databases effectively but also provides drivers with a singular application that aggregates various services from tens of thousands of independent providers. This integration paves the way for an enhanced user experience in the auto insurance landscape.

Cautionary Statements Regarding Forward-Looking Information

In light of this announcement, SunCar cautions that the content contains forward-looking statements relating to expectations, forecasts, and assumptions of management, including specifics about the offering and the use of anticipated proceeds. Such statements are subject to inherent risks and uncertainties beyond the company’s control, which could result in actual performance diverging significantly from projections.
Moreover, investors are encouraged to consider these risks before making investment decisions while keeping an eye on SunCar’s filings with the SEC, which outline various factors that could influence the company's operational results and market performance.

For more information, please visit SunCar's official website: suncartech.com.

In conclusion, SunCar Technology Group’s announcement signifies a critical phase in its growth strategy as it seeks to expand its market influence and operational capacity in the burgeoning automotive services industry in China. This offering stands as a testament to its enduring commitment to leveraging innovative technology within a rapidly evolving market landscape.