Shares of UP Fintech surged to a new all-time high on Tuesday after it said it is to raise $65 million through a private placement of convertible notes.
The Beijing-based online brokerage firm said in a statement today that a group of investors headed by an affiliate of Chinese smartphone giant Xiaomi (OTC: XIACF; HKEX: 01810) have subscribed for the notes. The notes will expire in 2026 unless they are converted beforehand, according to the company.
As of midday, the stock in UP Fintech was trading as high as $30.01 per American depositary share, up 13% from Monday’s close. So far this year, UP Fintech enjoyed a hot start; its shares are up a whopping 270% year-to-date.
In November, UP Fintech posted revenues that skyrocketed 148% year-over-year to $38 million for the quarter ending September. Its net income more than tripled to $4.9 million compared with the same period in the preceding year.
Founded in 2014, UP Fintech offers its customers services including trading and order placement, margin financing, investor education, ESOP management, and IPO subscriptions. In November, UP Fintech announced that the number of customer accounts on its brokerage platform hit the one million mark.
Since April 2020, UP Fintech has been operating in the wealth management sector.
For the full year 2020, analysts expect the company to post a profit of 13 cents a share, according to MarketWatch.
UP Fintech has not yet announced a date to disclose its fourth-quarter and full-year 2020 financial results.