Chinese fintech startup Senmiao Technologies Limited has filed for an initial public offering (IPO) in the US Securities and Exchange Commission (SEC) seeking to raise up to $20 million, according to its prospectus filed with the SEC on Monday (October 30).
The Chengdu-based firm intends to list on the Nasdaq under the symbol AIHS. ViewTrade Securities Inc will serve as sole bookrunner on the transaction.
Senmiao Technologies connects Chinese investors with individual and small- to-medium-sized enterprise (SME) borrowers and creditors. It has facilitated direct loans and assignment of loans with an aggregate of principal of over $41.2 million (RMB274 million) as of September 30, 2017.
The firm also recorded a total of 3,347 investors, 290 borrowers and two creditors to have participated in loan transactions through its platform.
Net proceeds of the offering amounting to $1.2 million shall be used to fund an escrow account for a period of 18 months following the closing date of this offering.
“We plan to use the net proceeds we will receive from this offering for business development, technology development, new hires, as well as for general working capital purposes,” Senmiao Technologies said in a statement.
Shares of common stock outstanding before this offering was at 45 million shares.
The company notes that it intends to use approximately 50 per cent of net proceeds on developing technologies that are essential to expanding its business, including risk management system, lending mobile application and business operation management system. About 40 per cent will be spent on marketing and promotion, and approximately 10 per cent on hiring additional employees.