Chinese Online Broker MMTec Raised Over $8 Million Through IPO
MMTec, through its Bahamian subsidiary, owns 100 percent of a U.S.-registered broker-dealer, MM iGlobal Inc., located in New York.
Chinese online broker MMTec's underwriter WestPark Capital today announced the completion of the initial public offering of MMTec Inc. (Nasdaq: MTC) with gross proceeds of $8.28 million.
The offering was priced at $4 per share and began trading on Jan. 8. Shares in the company closed at $7.23 per share today in New York, down more than 4 percent. WestPark Capital, the sole book running manager of the offering, said it exercised its over-allotment option to purchase an additional 270,000 shares of common stock from MMTec.
In October, the Beijing-based online securities trading platform filed with the Securities and Exchange Commission to raise $8 million by offering 1.8 million shares.
MMTec, through its Bahamian subsidiary, owns 100 percent of a U.S.-registered broker-dealer, MM iGlobal Inc., located in New York. With the broker-dealer license, the company is able to provide online discounted brokerage service to Chinese investors, both retail and institutional buyers.
To date, this startup has no revenue and recorded net losses of $1.1 million and $920,000 for the six months ended June 30 and the year ended Dec. 31, 2017, respectively.
In addition, the company helps China-based hedge funds, mutual funds, and proprietary trading groups to speed up their integration into the overseas market, offering additional services, such as fund establishment, issuance, custody, transaction and settlement, according to the filing.