Tencent-backed Internet Brokerage Futu Updates Financials Ahead of IPO

The online platform said its revenue soared 159 percent to $103.6 million and that it turned from net loss to income during 2018.
Anna VodFeb 20,2019,07:55

Futu Holdings Ltd., seeking a $300 million initial public offering on the Nasdaq Global Market, has updated its regulatory filing Tuesday to reflect its financials through 2018.

The fully digitized online brokerage company, based in Hong Kong, reported in its amended prospectus today that its revenue for the year through December reached $103.6 million, an increase of 159 percent from the preceding year. Net income for the year was $17.7 million, or 1 cent per share, in contrast to a net loss of $1 million in 2017, Futu said.

Launched in 2012, Futu aims to provide online stock trading services with low fees and live feeds. Unlike other platforms, Futu allows mainland Chinese investors to trade stocks in Hong Kong and the United States. It is reported that Futu Securities was among the top five brokerage companies in Hong Kong with more than 80 percent of users from mainland China. 

The platform has been backed by Chinese conglomerate Tencent Holdings Ltd. (HKEX: 0700), as well as Sequoia Capital and Matrix Partners China.

The company originally planned to go public in Hong Kong, but later picked New York for a more-streamlined listing process. It first filed with the U.S. Securities and Exchange Commission confidentially on Oct. 19. 

Futu stated that the purpose of its public offering is to provide its employees with equity incentives and obtain additional capital. It said that it plans to use the proceeds of the sale for “general corporate purposes, including research and development, working capital needs, and increased regulatory capital requirements of the HK SFC and regulatory authorities in other jurisdictions as a result of our business expansion.”

Underwriting the brokerage firm’s IPO are Goldman Sachs (Asia) LLC, UBS Securities LLC, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., and BOCI Asia Ltd.

The company expects to trade its shares under the ticker symbol “FHL.”