China’s Jiayin makes Nasdaq debut after pricing IPO at lower end

FILE PHOTO: A view of the exterior of the Nasdaq market site in the Manhattan borough of New York City, U.S., October 24, 2016. REUTERS/Shannon Stapleton/File Photo

Chinese lending marketplace Jiayin Group raised $36.75 million after pricing its Nasdaq initial public offering (IPO) at $10.50 per American Depositary Share (ADS) on Friday.

The IPO pricing was at the low end of a targeted range of $10.50-12.50.

The offering comprises 3.5 million ADS, representing 14.0 million underlying Class A ordinary shares. The joint book runners are Roth Capital Partners and Shenwan Hongyuan Securities.

The underwriters have a 30-day option to purchase up to 525,000 additional ADSs at the offering price to cover over-allotments. Jiayin expects to receive net proceeds of approximately $29.8 million before exercise of the over-allotment option.

Upon completion of the IPO, 98.0 million and 116.0 million Class A and B ordinary shares respectively will be issued and outstanding. The holders of both Class A and Class B ordinary shares will have the same rights except voting and conversion rights. Each Class A ordinary share is entitled to one vote, while each Class B share is entitled to ten votes and will be convertible into one Class A ordinary share.

Dingui Yan, the founder, director, and chief executive officer (CEO) of the company, will beneficially own all the Class B ordinary shares issued and outstanding, representing 92.2 per cent of the aggregate voting power.

Jiayin Group was founded in 2011 to connect lenders and borrowers in China through an online peer-to-peer (P2P) marketplace. The company’s strategy is focused on facilitating mid-to-long-term consumers with an average term of twelve months or more.

Jiayin disclosed that upon completion of the IPO, it plans to use the proceeds to implement its marketing initiatives, conduct strategic acquisitions of business and assets to strengthen its technologies and for general corporate purposes.

Jiayin’s stock made its debut on the Nasdaq Stock Exchange on May 10 at $11.00 and closed the market trading session at $16.15, up 53.81 per cent. During the regular trading session, the stock price of Jiayin traded at an intraday range of $11.00 to $17.25.

In after-hours trading, the stock price closed slightly downwards by 15 cents to end at $16.00.