Strategic Underwriting Moves: Cathay Securities and TechCreate Group's U.S. IPO in a Shifting Market

In the volatile landscape of U.S. technology sector IPOs, the strategic decision by TechCreate Group Ltd to add Cathay Securities as an underwriter for its upcoming U.S. IPOTechcreate Group Ltd Adds Cathay Securities As …^[4] signals a calculated move to leverage underwriting expertise and market access. This decision, announced in September 2025Techcreate Group Ltd Adds Cathay Securities As …^[4], aligns with broader trends in the IPO market, where underwriters with cross-border capabilities and regulatory compliance are increasingly sought after.

Cathay Securities: A Rising Player in U.S. Tech Underwriting

Cathay Securities, a FINRA-registered and SEC-regulated firmIPO Insights Q2'25 - kpmg.com^[3], has demonstrated its growing influence in the U.S. IPO market through recent engagements. For instance, it was appointed as an underwriter for FG Holdings Limited in June 2025FG Holdings Says Cathay Securities, Inc. Is Underwriter To US IPO^[1] and Zi Yun Dong Fang Ltd in July 2025Zi Yun Dong Fang Ltd adds Cathay Securities, Inc to its list of ...^[5]. These appointments underscore Cathay's ability to secure roles in diverse tech-driven offerings, even as the broader IPO market faces challenges.

While specific performance metrics for Cathay's U.S. tech IPOs between 2020 and 2025 remain opaqueIPO Data - Jay R. Ritter^[2], its participation in high-profile deals suggests a strategic focus on niche technology sectors. For example, Cathay's involvement in Pictureworks International Holdings Ltd's proposed IPO highlights its alignment with innovation-driven enterprisesCathay Securities to Underwrite Pictureworks IPO^[6]. This aligns with a broader trend: in Q2 2025, the Technology, Media, and Telecommunications (TMT) sector accounted for 38% of deals raising over $500 millionIPO Insights Q2'25 - kpmg.com^[3], reflecting sustained investor appetite for tech innovation.

Market Access and Institutional Investor Dynamics

The decision to include Cathay Securities in TechCreate's underwriting team also speaks to the firm's potential to enhance market access. Institutional investors, who play a pivotal role in IPO success, often favor underwriters with strong cross-border networks and regulatory credibilityThe Role of Institutional Investors in IPOs^[7]. Cathay's compliance with U.S. financial standardsIPO Insights Q2'25 - kpmg.com^[3] positions it as a bridge for Asian-based tech firms seeking U.S. capital markets, a critical advantage in an era of geopolitical uncertainty.

Moreover, Cathay's recent appointments indicate a shift in underwriting dynamics. For example, FG Holdings Limited removed other underwriters like American Trust Investment Services, Inc. and Revere Securities LLC before finalizing Cathay's roleIPO Data - Jay R. Ritter^[2]. This suggests that companies are prioritizing underwriters with demonstrated adaptability, particularly in a market where IPO activity declined by 16% year-over-year in Q2 2025 despite a 16% increase in deal numbersIPO Insights Q2'25 - kpmg.com^[3].

Post-IPO Performance and Risk Mitigation

While Cathay's track record in post-IPO performance remains undocumentedIPO Data - Jay R. Ritter^[2], the broader U.S. tech IPO landscape offers mixed signals. In Q2 2025, the TMT sector delivered an average return of 46.9% across 10 IPOsIPO Insights Q2'25 - kpmg.com^[3], but this contrasts with underperformance in companies like InstacartZi Yun Dong Fang Ltd adds Cathay Securities, Inc to its list of ...^[5]. For TechCreate, Cathay's involvement could mitigate such risks by leveraging its network to stabilize early trading volatility. Institutional investors, who often anchor IPO demand, are more likely to commit to deals backed by underwriters with proven regulatory compliance and market reachThe Role of Institutional Investors in IPOs^[7].

Conclusion: A Strategic Bet in a Fragmented Market

TechCreate Group's decision to partner with Cathay Securities reflects a nuanced understanding of the U.S. IPO ecosystem. By aligning with an underwriter that combines regulatory rigor with cross-border expertise, TechCreate positions itself to capitalize on the TMT sector's resilience, even as broader IPO activity remains fragmented. For investors, this move warrants close scrutiny, particularly as Cathay's role in future IPOs could signal broader shifts in underwriting dynamics.