China-based payment platform Lakala Payment is set to list on ChiNext, a bourse of the Shenzhen Stock Exchange, providing an exit to conglomerate Legend Holdings, China Money Network reported on Wednesday.
The decision follows Lakala’s attempt to conduct a reverse merger with Shanghai-listed travel business Tibet Tourism, which did not materialise following regulatory changes that made such offerings more difficult.
Lakala aims to issue up to 40.01 million shares, though no financial details have yet emerged.
Founded in 2005, Lakalahas developed a payment processing platform that combines a card reader with a smartphone app (pictured) to enable transactions.
The company competes with Alipay and Tenpay, payment services operated by e-commerce group Alibaba and internet company Tencent respectively. Those two platforms are responsible for nearly 90% of the Chinese market while Lakala claims a share of about 3%.
In October 2016, Lakala announced it would split its businesses into Lakala Payment and Koala Financial Service. The latter will not be part of the flotation.
Legend Capital, an investment arm of Legend Holdings, currently owns a 31.4% stake in Lakala, making it the company’s largest shareholder. Legend invested an undisclosed amount in 2010.
Taoran Sun, co-founder of Lakala, owns a 7.7% stake while Lei Jun, fellow co-founder of Lakala and founder of smartphone manufacturer Xiaomi, holds a 1.1% share.
– Image courtesy of Lakala