Alpha Technology Debuts on Nasdaq as the First AI IT Service Company from Hong Kong

Alpha Technology Group Limited, a leading IT solutions provider and cloud-based service provider in Hong Kong, has successfully priced its initial public offering and commenced trading on the Nasdaq stock exchange on October 31, 2023, with symbol ticker “ATGL” after pricing its IPO at $4 per ordinary share. Alpha Technology Group Limited with its operating subsidiaries in Hong Kong (collectively, “

Alpha

”) is also the first artificial intelligence IT service provider from Hong Kong to get listed in the U.S., and it has garnered significant investor interest for its cutting-edge solutions that optimize operational performance, tackle industry-specific challenges, and unlock new opportunities for clients across diverse sectors.  

Alpha is a leader in AI-powered optical character recognition (AI-OCR) services as well as customer relationship management (CRM) and enterprise resource planning (ERP) systems in Hong Kong. Its state-of-the-art AI-OCR solutions enable its clients to extract vital information more accurately from printed documents using advanced artificial intelligence technology. Alpha embeds its AI-OCR technology into its CRM and ERP systems to ease or eliminate the manual data entry process. By automating administrative tasks, Alpha’s services save valuable time and reduce labor costs for their clients. 

With exceptional technological prowess, Alpha also specializes in crafting tailor-made web and mobile applications that streamline tasks, enhance productivity, and meet the unique needs of its clientele. According to its listing prospectus, Alpha’s expertise lies in developing applications that leave a lasting impression on its discerning clients.

Alpha’s mission is to “make work easy for you and help simplify your day”.

Fuchsia Capital Limited and Rainbow Capital (HK) Limited are the joint financial advisers (the “Joint Financial Advisers”) to Alpha in relation to its listing on the Nasdaq Capital Market.

Comprehensive IT Toolkit

More precisely, Alpha helps clients develop cloud-based CRM and ERP systems by harnessing the power of the digital realm. Its comprehensive toolkit empowers clients from different businesses to manage their finances and resources effectively while providing seamless collaboration between Microsoft’s Office tools.

Alpha is at the forefront of innovation with its AI-OCR services, which are revolutionizing the way its clients interact with printed text. Alpha's technology enables precise extraction of texts from images and documents and goes beyond traditional OCR services by understanding complex layouts and industry-specific items. Alpha's software automates error checking and reduces manual data entry, with applications in various industries such as automating fee collection and streamlining loyalty programs. Alpha plans to expedite processing time and expand the software's applications to the finance and insurance sectors. Alpha also aims to expand its market presence and enhance language recognition capabilities. Overall, the AI-OCR software revolutionizes document processing, enabling businesses to embrace digital transformation and reduce administrative burdens.

In addition to its core offerings, Alpha provides top-notch maintenance and enhancement services that ensure the longevity and optimization of the systems it creates for its clients.

Alpha sets itself apart by providing innovative NFT-related services that encompass creating captivating NFT artwork and developing immersive NFT marketplaces and NFT-related games. Through these services, it empowers valued customers to digitize their artwork and gain exposure in the thriving digital landscape.

Established player with recognition from key clients

Alpha has a diversified customer base that comes from a variety of industries with different scales of operations, including consulting, real estate, architectural design, carpark management, electronic payment services, logistics, investments, retail, textiles, wholesale and distribution, etc.

It helps develop CRM and ERP systems, and provides its AI-OCR services to an array of valuable clients including but not limited to: a major distributor of various kinds of electronic appliances in Hong Kong with more than 36 years of operation; a garment manufacturer and exporter in Hong Kong with more than 30 years of operation; a payment technology provider in Hong Kong that provides payment gateway services to its customers, listed on the New York Stock Exchange with a market capitalization of approximately US$28.3 billion; and last but not least, a carpark management company in Hong Kong managing approximately 370 carparks and a wide range of transport facilities for both the private and public sectors. It is also a subsidiary of a domestic property developer, which is listed on the Hong Kong Stock Exchange with a market capitalization of approximately HK$231.5 billion (approximately US$29.6 billion). 

Enormous market potential

According to a Frost & Sullivan report cited in the prospectus, the CRM system market size in Hong Kong grew from HK$1,156.4 million in 2018 to HK$1,630.1 million in 2022, with a projected CAGR of 7.1% reaching HK$2,303.3 million by 2027. The ERP system market size expanded from HK$1,495.0 million in 2018 to HK$1,801.0 million in 2022 and is expected to reach HK$2,333.8 million by 2027, with a CAGR of 5.2%. The web and mobile application development services market in Hong Kong increased from HK$24,658.2 million in 2018 to HK$25,870.3 million in 2022 and is predicted to grow at a CAGR of 5.0% from 2023 to 2027.

The integration of AI and advanced technologies is revolutionizing OCR services, enhancing document and data processing efficiency with human-like capabilities. This advanced technology also drives accuracy and effectiveness in OCR systems. Hong Kong's OCR market is poised for significant growth, with a projected CAGR of 15.3% from 2023 to 2027. OCR plays a crucial role in the digital transformation of businesses, simplifying data collection, access, and sharing, thereby improving operational efficiency.

Moreover, technological advancements in OCR, powered by AI and machine learning, offer benefits such as improved accuracy, enhanced customer service, heightened document security, and wider applicability across industries. For example, the banking, financial services, and insurance (BFSI) sector is witnessing increased demand for OCR, enabling document digitization, security enhancement, and intelligent processing.

In summary, the integration of AI in OCR services is driving market growth and enabling businesses to streamline operations and embrace digital transformation. Technological advancements in OCR bring a multitude of benefits and these trends highlight the transformative potential of AI-powered OCR in improving efficiency, accuracy, and customer services.

With a deep understanding of customer needs and a focus on AI technological infrastructure and cybersecurity, Alpha has the potential to capitalize on these significant market growth opportunities to expand its service offerings, enhance its brand, and target expansion into overseas markets.

As Alpha continues to optimize and diversify its comprehensive IT services that can be integrated seamlessly with clients’ existing systems while minimizing maintenance costs and driving customer loyalty, it is well-positioned to provide robust data security and reliability that instills customer confidence, so that to achieve next-stage growth following its successful IPO.

Information on the Joint Financial Advisers

Fuchsia Capital Limited, a company incorporated in Hong Kong, is principally engaged in financial investment and the provision of consultancy services. 

Rainbow Capital (HK) Limited, a company incorporated in Hong Kong, is a corporation licensed by the Securities and Futures Commission of Hong Kong to carry out Type 1 (dealing in securities) and Type 6 (advising on corporate finance) regulated activities, providing IPO sponsorship and financial advisory services in Hong Kong.

Company: Alpha Technology Group Limited

Contact Person: Janice Wang

Email: services-at-wealthfsllc.com

Website: https://techlution.io

Company: Fuchsia Capital Limited

Contact Person: Tsang Chun Ho, Anthony

Website: https://www.fuchsiacap.com/

Email: anthony-at-fuchsiacap.com

Company: Rainbow Capital

Contact Person: Larry Choi

Website: https://www.rainbowcaphk.com/

Email: larry.choi-at-rainbowcaphk.com

Larry Choi

Alpha Technology Group Limited

Email: larry.choi-at-techlutionservice.com

Disclaimer: This press release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those expressed in the statements. This information is for informational purposes only and should not be construed as investment advice. Before making any investment decisions, individuals are advised to consult with their financial advisors. This press release is not an offer to sell or a solicitation of an offer to buy any securities. The information may be subject to change without notice.