Jiayin, a Top Player in P2P Lending Business, Files for $57.5 Million IPO on Nasdaq

The financing platform said it intended to use the proceeds of its IPO to invest in its marketing to build brand awareness and expand its user base, as well as for strategic acquisitions and for general corporate purposes.

Anna Vodopyanova
    Dec 19, 2018 5:26 PM  PT
Jiayin, a Top Player in P2P Lending Business, Files for $57.5 Million IPO on Nasdaq
author: Anna Vodopyanova   

A leading individual financial marketplace, Jiayin Group Inc., is seeking to raise up to $57.5 million in an initial public offering on the Nasdaq Global Select Market in New York. 

Jiayin, which conducts business as Niwodai at www.niwodai.com, connects individual investors and individual borrowers on its online platform. It was the third-largest company of its kind in China in the first half of this year, according to its prospectus filed Wednesday. The company also ranked first in terms of borrower satisfaction and willingness to recommend the marketplace to others, it said, citing a January 2018 survey by independent market research firm, iResearch.

During the nine months through September, investors on Jiayin invested on average $10,097 on the platform, while the total investment volume reached $2.8 billion, according to its filing. Of that amount, 96 percent were repeat investors. 

With headquarters in Shanghai, the company offers online loan products ranging from 5,000 yuan to 30,000 yuan, with fixed terms and repayment schedules. Jiayin generates revenue from service fees it collects for matching investors and borrowers, as well as for services provided during the term of a loan.

From 2016 to 2017, Jiayin said its revenue increased 281 percent to $327.7 million. The company reported income of $78.6 million last year in contrast to a loss of $57.3 million for 2016. During the nine months through September, Jiayin's revenue reached $316.2 million, up 47 percent year-over-year. Its profit for the period was $65.4 million, at a 13 percent increase, the company said.

During the third quarter this year, Jiayin, like other lending platforms in China, was hit hard by the tightened regulations implemented by Beijing in the financing sector as officials attempted to control risks. As a result, the company said it had a loss of $6.5 million during the three months through September. 

However, Jiayin said, "the negative impact of such unfavorable market developments were temporary and has started to subside."

China's peer-to-peer lending market has been growing in a "gradual and stable" way, the company said. From $312.1 billion last year, the online individual finance transaction volume in China is expected to reach $807.8 billion in 2022, according to iResearch.

The financing platform said it intended to use the proceeds of its IPO to invest in its marketing to build brand awareness and expand its user base, as well as for strategic acquisitions and for general corporate purposes.

Underwriting the deal are Roth Capital Partners and Shenwan Hongyuan Securities.

Jiayin is expected to trade its shares on Nasdaq nder the symbol "JFIN."


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