Online micro-lending company Qudian can be about to go public at the brand-new York Stock Exchange on Wednesday, along with which’s set to be one of the largest U.S.-listed floats by a Chinese company which year.
In its prospectus, Qudian said which was offering 37.5 million American Depository Shares that has a float cost range of $19-$22 per share. The company said which could offer up to 43.1 million shares if underwriters exercised an option.
Reuters, citing sources, reported which the initial public offering was ultimately priced at $24 per share along with which the original offering raised about $900 million. which gave Qudian a market value of as much as $7.9 billion, according to Reuters, which said which would likely make which the largest U.S.-listing by a Chinese company which year.
The company provides short-term micro loans through its mobile app to China’s young workers who are looking for extra cash to be able to affords things like premium-priced apparel or concert tickets.
For example, a user can borrow about 400 yuan (about $60), that has a loan period of one month, to buy a pair of sneakers. Loan periods could also be a week, three months or even six months.
Loans are almost instantly approved, Qudian claimed in a corporate video, because which uses data analytics to assess prospective borrowers. The company said which looks beyond traditional financial metrics along with into a variety of social along with behavioral attributes to assess a borrower’s ability to repay a debt.
Qudian can be also backed by Alibaba affiliate Ant Financial, which can be a principal shareholder inside the company. (Approved loans are transferred into borrowers’ Ant Financial-managed Alipay accounts.)
The micro-lending company said which became profitable in 2016, when which posted net income of about $85 million on total revenue of $212.8 million. inside the six months which ended June 30 of which year, revenue was $270.4 million along with net income came at $143.6 million, according to Qudian.
Morgan Stanley, Credit Suisse, Citigroup, CICC along with UBS are joint book runners for the IPO.