Q&K Issues $100 Million in Convertible Bonds

Q&K said the fund will be mainly used to acquire a well-known apartment brand in China.
Binwei WangJul 23,2020,06:55

Q&K International Group Ltd. (Nasdaq: QK) announced Wednesday that it will issue a four-year convertible bond with a total principal amount of $100 million, and initial orders from investors are expected to be completed within two weeks.

The Shanghai-based long-term apartment rental platform said in today’s announcement that the fund will be mainly used to acquire a well-known apartment brand in China.

Founded in 2012 and listed on Nasdaq on November 5, 2019, Q&K’s apartments number rising from 900 in 2012 to 100,000 in 2019. The company provides ready-to-move-in rental spaces, targeting China's youth in urban areas. It leases apartments from owners and transforms them into standardized furnished rooms for rent, a model which the company called "dispersed lease-and-operate."

COVID-19 has brought a giant effect on long-rented apartments, and the rising vacancy rate is the majority pressure of this industry.  "Although the epidemic has brought considerable challenges to the industry, opportunities have also been bred in the crisis," Q&K said.

The stock of Q&K up 3.48% in New York today, closed at $9.45.


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