Weidai Prepares to Ring the Bell Tomorrow, Aims to Raise $49.5 million
Weidai is expected to ring the bell tomorrow in New York, planning to raise up to $49.5 million by offering 4.5 million ADSs at a price range of $9 to $11 per ADS.
Weidai Ltd., a Hangzhou-based financing platform, is expected to ring the bell tomorrow in New York, planning to raise up to $49.5 million by offering 4.5 million ADSs at a price range of $9 to $11 per ADS, according to regulatory documents.
The company would be listed on the New York Stock Exchange under the symbol "WEI."
The IPO was downsized from the $100 million Weidai targeted in its initial prospectus filed two months ago. According to Bloomberg, Weidai previously planned to raise nearly $400 million when it first announced its plans to list in the U.S. The company did not say whether it had lowered the number of ADSs it seeks to sell or the price per share.
According to its prospectus, Weidai was the largest auto-backed financing provider in China in terms of loan volume from 2015 to 2017, with a market share of approximately 35 percent last year.
Weidai reported revenue of $156.7 million for the third quarter, 81 percent of which was generated from loan facilitation service fees. Income reached $28.3 million, and operating costs and expenses were $96.8 million, the company said.
The company added that it had submitted its inspection report as required by recent regulatory changes in China's peer-to-peer lending industry.
Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, and Citigroup Global Markets Inc., and AMTD Global Markets Ltd. are acting as underwriters on Weidai's deal.