Used Car Platform Uxin Raises $400 Million in Nasdaq IPO; Stock Inches Up 3%

The company, under the symbol “UXIN,” priced 25 million American depositary shares at $9 per share, below the expected range.

CapitalWatch Staff
    Jun 27, 2018 9:06 AM  PT
Used Car Platform Uxin Raises $400 Million in Nasdaq IPO; Stock Inches Up 3%
author: CapitalWatch Staff   

(Updated Wednesday with pricing of IPO and intraday stock price)

Uxin Ltd., China's largest online used car sales platform, raised $400 million at its initial public offering Wednesday on the Nasdaq Global Select Market.

Uxin's shares lifted off just before midday and rose nearly 3 percent to $9.24 per share within minutes.

The company, under the symbol "UXIN," priced 25 million American depositary shares at $9 per share, each representing three ordinary shares. The pricing is below the lower end of the expected range, between $10.50 and $12.50 per share, which the company reported in its regulatory filing of June 22.

The deal's underwriters, which include Morgan Stanley, Goldman Sachs (Asia) LLC, J.P. Morgan, CICC, and China Renaissance, have the right to purchase an additional 3.75 million ADSs in an over-allotment.

Founded in 2011, the platform is the largest of its kind in China in terms of both the number of transactions facilitated and the sales value in 2017, according to iResearch. It has been backed by two large investors, Warburg Pincus LLC and Baidu Inc. (Nasdaq: BIDU), which hold a combined 24 percent stake as well as senior management roles in the company, according to Uxin's prospectus.

The Beijing-based company operates two businesses on its platform. The Used Car (business-to-consumer) segment provides information regarding recommendations, financing, documents, delivery, and warranty, among other things. The Auction (business-to-business) platform helps companies acquire and deliver vehicles.

The company also provides inspection services to assess the quality of used vehicles and generate reports for consumers.

Uxin said its network had more than 670 service centers in 270 Chinese cities at the end of March. It sold 165,000 cars in this year's first quarter, nearly 62 percent more than in the same period of 2017. For all of 2017, Uxin reported it sold more than 634,000 cars, representing a 68 percent increase from a year earlier.

For the first quarter, the company reported a 93 percent increase in revenue at $103.3 million. Net loss also increased, rising 64 percent to $133.5 million compared with a loss of $81.4 million a year ago.

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