X Financial, a China-based peer-to-peer lending platform backed by conglomerate Chow Tai Fook Enterprises, filed for a $250m initial public offering on the New York Stock Exchange on Tuesday.
Founded in 2014, X Financial provides a range of personal financial services products, including a peer-to-peer lending marketplace, credit card loans and wealth management.
The proceeds will enable X Financial to pursue potential investment and acquisition opportunities, though the company has not yet made any such commitments. The majority of the cash will go towards general corporate purposes.
X Financial raised $146m in a series B round in 2017 backed by construction company Suzhou Gold Mantis Construction Decoration, real estate developer Shanghai City Holdings and healthcare retailer Bonian Kangcheng Healthcare Management.
Additional details about the company’s funding could not be ascertained and it is not clear when Chow Tai Fook Enterprises, which owns a 13.6% stake in X Financial through an offshore entity called Deal Vanguard, invested in the business.
Mangrove Coast Trust, a vehicle for chief executive and chairman Yue Tang, owns a 35.7% stake. Private backers Baoguo Zhu, Chung Kiu Cheung and David Fung hold a respective 10%, 9.7% and 7.1% through various investment holding firms.
Deutsche Bank Securities and Morgan Stanley are acting as joint bookrunning managers for the proposed offering, while China Merchants Securities is also serving as underwriter.