Wealth Manager Puyi Sets Price Range for Public Offering on Nasdaq
The Guangzhou-based provider of wealth management services said it aims to sell its shares at between $6 and $7.50 apiece.
Wealth management services provider Puyi Inc., seeking an initial public offering on the Nasdaq Global Market, has set an expected price range to between $6 and $7.50 per American depositary share in its latest filing this week.
The Guangzhou-based company is aiming to sell between 4 million and 6.7 million ADSs, according to its amended prospectus filed with the U.S. Securities and Exchange Commission Tuesday. The maximum IPO amount it expects to raise is $40 million, it said, the same as in its initial filing in November.
Puyi provides wealth management services, corporate finance services, and asset management services to Chinese clients. For the year ended June 30, the aggregate transaction value of the wealth management products the company distributed totaled 6 billion yuan ($900 million).
The company reported revenue increased from $23 million for the year ended June 2017 to $25.1 million for the year through June 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 earlier.
The wealth manager said it planned to use the IPO proceeds to expand its network, including in first- and second-tier cities in China, as well as increase its team of investment advisors. In addition, Puyi is seeking to upgrade its IT infrastructure, and launch additional investment funds, it said.
Underwriting Puyi's offering in New York is Network 1 Financial Securities Inc.
The company has reserved the ticker symbol "PUYI" for its listing.