Sequoia-backed Chinese fintech Jianpu raises $180m in IPO, rises in U.S. debut

Photo by Adi Constantin on Unsplash

Shares of Jianpu Technology Inc rose as much as 3.8 percent in their U.S. market debut on Thursday, giving the Chinese online financial planning platform a market value of about $3.42 billion.

Jianpu‘s initial public offering of 22.5 million American depository shares was priced at $8.00 per ADS – below its proposed range of $8.50 to $10.50 – and raised $180 million.

The market value of $3.42 billion was calculated based on 412.3 million ordinary shares outstanding. Jianpu‘s two ADSs represent five Class A ordinary shares.

Beijing-based Jianpu‘s shares opened at $8.25 and hit a high of $8.30 on the New York Stock Exchange.

The IPO is the latest in a recent flurry of New York listings by Asian companies and follows that of Chinese online micro-credit lender Qudian Inc, which raised $900 million in the biggest U.S. listing by a Chinese company this year.

The company, a unit of Chinese fintech company Rong360 Inc, generates revenue from fees for its recommendation services on loan products and credit card products.

Financial products and services are increasingly being made available on online platforms in China as the nation’s rapidly multiplying internet population has created demand for innovative business models.

Beijing-based Jianpu‘s net loss narrowed to 49.04 million yuan ($7.39 million) in the six months ended June 30, from 104.6 million yuan a year earlier. Its revenue jumped more than two-fold to 393.4 million yuan.

Venture capital firms Sequoia Capital and Lightspeed China Partners are Jianpu‘s major shareholders.

Goldman Sachs, JP Morgan and Morgan Stanley were among the top underwriters for the IPO.

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Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.