Pintec, the China-based business financing marketplace that counts internet company Sina and electronics maker Xiaomi as investors, has secured $44.3m in an initial public offering in the US.
The company issued just over 3.7 million American depositary shares (ADSs), each worth seven ordinary shares, on the Nasdaq Global Market priced at $11.88 each, near the top of the $10 to $12 range it set earlier this month. It gave Pintec a market capitalisation of about $444m.
Founded in 2013, Pintec has created a system that enables businesses to offer financing options such as point-of-sale financing or insurance using capital sourced from lenders such as banks, brokers or asset management firms.
The company made a $1.9m net profit in the first six months of this year, from $87.3m in revenue. It plans to use $10m of the proceeds to repay a July 2018 loan from Xijin Venture Capital Management and $10m will support an application for a microlending licence.
Pintec had raised approximately $125m prior to the IPO, according to the prospectus. Sina and venture capital firm Mandra Capital co-led its last round in June 2018, in which it raised $103m from a consortium also including STI Financial Group, Shunwei Capital Partners and Zhong Capital Holding.
Sina bought $5m of shares in the offering to increase its stake from 7.7% to 8.1%. Mandra affiliate Mandra iBase bought $10m to boost its share of the company from 9.1% to 10.4% while co-founder Xiaomei Peng invested $4.7m and grew her stake from 5.2% to 5.8%.
Xiaomi’s corporate venturing unit, Xiaomi Ventures, held a 7.2% stake that was diluted to 6.5% in the offering. Pintec’s other notable shareholders include Genius Hub, a vehicle for co-founder and ex-CEO Jun Dong (9% post-IPO), Ventech China (6.7%) and Matrix Partners China (4.6%).
Goldman Sachs (Asia), Deutsche Bank Securities and Citigroup Global Markets are joint bookrunners for the IPO. ICBC International Securities is a co-manager and is offering and selling shares to non-US citizens outside the US.
The underwriters have the option to sell almost 560,000 more ADSs, which would increase the size of the IPO to approximately $61m. The company floated on Thursday last week and its shares closed back at $11.88 yesterday.
