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Chinese Wealth Manager Puyi Plans to Raise $40 Million in U.S. IPO

Founded in 2010, Puyi has become the largest third-party wealth management services provider in China focusing on mass affluent and emerging middle-class population.

Selina Cheng
    Nov 23, 2018 11:08 AM  PT
Chinese Wealth Manager Puyi Plans to Raise $40 Million in U.S. IPO

Puyi Inc., a China-based third-party wealth management services provider, has filed with the Securities and Exchange Commission to raise as much as $40 million in an initial public offering. 

The company did not specify the number of shares or the anticipated price range for the shares, but it said it planned to list on the Nasdaq exchange under the ticker symbol "PUYI." 

The deal is being marketed on a best effort basis, according to the filing.

The company reported revenue increased from $23 million for the year ended June 30, 2017, to $25.1 million for the year ended June 30, 2018, primarily driven by the growth of the corporate finance sector and its newly launched asset management services. In addition, Puyi's net income almost doubled to $9.6 million for the year ended June 30, 2018, compared with $5.8 million for the same period a year ago. 

The Guangzhou-based company provides wealth management services, corporate finance services and asset management services to Chinese clients. Its largest business is wealth management services. For the year ended June 30, the aggregate transaction value of the wealth management products the company distributed totaled 6 billion yuan ($900 million).

Founded in 2010, Puyi has become the largest third-party wealth management services provider in China focusing on mass affluent and emerging middle-class population, with a 10.4 percent market share based on 2017 transaction value, according to China Insights Consultancy (CIC). 

Network 1 Financial Securities is the sole bookrunner on the deal. 


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