Date
24 November 2017
Qudian, backed by Alibaba Group affiliate Ant Financial, had a stellar debut in New York on Wednesday. Representational image: Bloomberg
Qudian, backed by Alibaba Group affiliate Ant Financial, had a stellar debut in New York on Wednesday. Representational image: Bloomberg

Chinese fintech firm Qudian soars in US market debut

Shares of Qudian Inc, a Chinese online micro-credit firm, surged as much as 48 percent on their first day of trading on the New York Stock Exchange on Wednesday.

The company, which priced its initial public offering at US$24 per American depository share, saw the stock jump to more than US$35 in early trading before paring the gains and ending slightly below US$30.

Qudian, backed by Alibaba Group affiliate Ant Financial, raised US$900 in its IPO, making it one of the biggest listings of a Chinese firm in the US this year, Reuters reports.

The company runs a mobile platform that allows college students and young workers to borrow amounts as low 400 yuan to buy apparel, concert tickets or smartphones.

Founded in 2014 by Min Luo, Qudian became profitable last year.

It provided US$5.6 billion of credit in the first half of 2017 to seven million active borrowers, according to its IPO paperwork with US regulators.

Profit jumped almost eight times to US$144 million in the six months ended June, while revenue rose near five-fold to US$270 million.

Qudian sold 35.63 million new shares in the IPO, while shareholders including Kunlun Group and board directors Li Du and Yi Cao sold 1.88 million existing shares.

The strong debut gives the company a market valuation of more than US$10 billion.

The Chinese fintech firm plans to use the IPO proceeds on advertising to sign up more borrowers, as well as on potential acquisitions and for general corporate purposes.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe