Chinese P2P Lending Firm PPDai Files USD3.5 Million IPO Application in New York

Chinese P2P Lending Firm PPDai Files USD3.5 Million IPO Application in New York

Dou Shicong

Date: Mon, 10/16/2017 - 12:05 / source:Yicai
Chinese P2P Lending Firm PPDai Files USD3.5 Million IPO Application in New York
Chinese P2P Lending Firm PPDai Files USD3.5 Million IPO Application in New York

(Yicai Global) Oct. 16 -- Chinese peer-to-peer lending company Shanghai PPDai Financial Information Services Co. plans to raise up to USD3.5 million via a stock listing on the New York Stock Exchange (NYSE), the company said in its initial public offering prospectus released last Friday.

The listing may be completed by as early as late November under the proposed ticker PPDF, online news outlet Jiemian News reported.

PPDai, founded in 2007, was one China’s earliest P2P lending platforms, specializing in consumer microfinance businesses. The firm currently has about 48 million registered users, with an aggregate transaction volume of USD11.86 billion (CNY78 billion). It reported operating income of USD263.43 million in the first six months of the year, while net profit was USD159.46 million.

The firm originally had five shareholders, with co-founder Gu Shaofeng holding a 59.35-percent stake. It carried out three rounds of financing in 2012, 2014 and 2015 led by Sequoia Capital, Noah Holdings Ltd. [NYSE:NOAH] and Legend Holdings Corp. [HKG:3396]. The original shareholders’ equity was diluted as a result.

If the IPO application is successful, PPDai will become the third Chinese P2P lending firm to list on the New York Stock Exchange behind Yirendai Ltd. [NYSE:YRD] and China Rapid Finance Ltd. [NYSE:XRF], who have traded since December 2015 and April 2017, respectively.

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Keywords: PPDai.com, IPO, P2P