X Financial, a fintech company which operates a peer-to-peer lending platform in China, has filed for an initial public offering with the US SEC to raise $250 million.
The company plans to list on the NYSE under the symbol XYF.
Founded in 2014, X Financial describes itself as a fintech company which commits to providing personal financial services based on mobile internet and big data in China for both borrowers and investors.
The company’s major loan products for borrowers include Xiaoying Card Loan, a credit card balance transfer product, and Xiaoying Preferred Loan, a high-credit-limit unsecured loan product. The products operated for investors include the Xiaoying Wealth Management platform, which is differentiated by its insurance protection offering.
Earlier this year, X Financial announced the closing of a Series B financing round of RMB 1 billion ($147 million) from existing investors including ZHU Baoguo, as well as a host of new backers including Gold Mantis Enterprise (Group), Shanghai City Holdings Co., Ltd. and investment enterprises subsidiary to Bainian Kangcheng Health Management Group.
In the last 12 months ended June 30, 2018, the company booked $445 million in revenue.
By filing for an IPO, X Financial will follow the footsteps of fellow Chinese P2P lender Weidai which earlier this month filed for a $100-million initial public offering (IPO) in the US, with plans to list on the New York Stock Exchange.
Weidai claims to be the largest auto-backed financing solution provider in China in terms of volume in the past three years.
The IPO filings of the two companies come as the Chinese government is making efforts to tighten regulations in the country’s troubled peer-to-peer lending sector, which has seen many P2P platforms recently going out of business, with 157 reported to be having troubles returning money to investors.
As part of the latest efforts to crack down the problems in the sector, regulators have ordered the country’s online peer-to-peer (P2P) lending platforms to submit lists of deadbeat borrowers.