Chinese P2P lender X Financial files for $250m US IPO

Trading floor of the New York Stock Exchange (NYSE).

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.

Also Read:

China: GIC-backed P2P lender Dianrong closes $40m funding round

Indonesia identifies 227 illegal P2P lending startups, mostly from China

China’s P2P platform failures soar as panic spreads in market

Singapore Reporter/s

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

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

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  • 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. 
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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.