An online broker serving Chinese investors, Up Fintech Holding Ltd., is seeking to become a publicly traded company in New York, targeting an initial public offering of $150 million.
The company, which operates an online and mobile platform under the name Tiger Trade App, offers brokerage and other trading services, including “trade order placement and execution, margin financing, account management, investor education, community discussion and customer support.”
According to a preliminary prospectus filed with the Securities and Exchange Commission today, it is the world's largest online broker for Chinese investors in terms of U.S. securities trading volume, with a market share of 58 percent, it said, citing information from Shanghai iResearch Co. Ltd.
The rapidly growing company said that during the fourth quarter the turnover rate on its platform was 1,496 percent. The conversion rate and retention rate of customers were as high as 15 percent and 82 percent as of Dec. 31 and in 2018, respectively. Its revenue nearly doubled year-over-year to $33.6 million in 2018, it said, though the firm’s net loss reached $44.3 million compared with a loss of $7.9 million for the prior year.
Up Fintech said it intends to use the proceeds of its offering for general corporate purposes, which may include investments in product and technology research and development, sales and marketing activities, technology infrastructure, and capital expenditures. It also said it is seeking to set up entities and apply for operating licenses in multiple jurisdictions to expand its customer base.
In addition, the firm plans to satisfy the increased capital adequacy requirements pursuant to the New Zealand Stock Exchange or regulators in other jurisdictions, among other things.
Underwriting the deal are Citigroup Global Markets Inc., Deutsche Bank Securities Inc., AMTD Global Markets Ltd., China Merchants Securities (HK) Co. Ltd., and Top Capital Partners Ltd.
The company reported it has received backing from financial and technology giants including Interactive Brokers LLC and Xiaomi Corp.
“We believe that our superior user experience, proprietary technology platform and strong brand recognition in the industry enable us to maintain our leadership in terms of U.S. securities trading services and further strengthen our competitiveness in terms of Hong Kong securities trading services for global Chinese investors,” the firm said in its filing.
Up Fintech is seeking approval to trade on the Nasdaq Global Select Market under the symbol “TIGR.”