Huize Holding, the operator of an online insurance intermediation platform in China, raised approximately $55 million after pricing its offering at $10.50 apiece, slightly above the midpoint of its $9.40-$11.40 range, according to its filing.
The company offered 5.3 million American depositary shares (ADSs), or 600,000 more than expected. Each ADS represents 20 Class A common shares of the company. Huize originally filed to raise $150 million in September 2019 but the figure was trimmed to about $48 million.
The stock traded on Nasdaq Wednesday, hitting a high of $10.83 before closing at $10.
“Listing in the US not only allows the company to enter the international trade market but also provides a solid foundation for the long-term development of the company,” Cunjun Ma, chairman of the Board of Directors and CEO of Huize Holding, said in a statement.
In the future, Huize will continue to focus on consolidating its position in the online insurance sector in China, Ma, who founded the company in 2014, added.
Huize disclosed that the proceeds from its IPO will be used to invest in technology and big data analytics to boost user acquisition and risk management capabilities. Part of the proceeds will also be used to further improve its product and cover general corporate expenses.
Focusing on China’s younger generation, Huize distributes insurance products and services with the aim of helping insurance firms serve a large number of purchasers, it said in its prospectus.
Its products cover two major categories — life and health insurance, property & casualty insurance products. Based in Shenzhen, the company booked $108 million in revenue for the 12 months ended June 30, 2019.
Its annual revenue in 2018 nearly doubled to $74.1 million from the preceding year. The firm, which has served at least six million clients, turned to profit in 2018, reporting $400,000 in income in contrast to bearing losses in 2017.
It made $900,000 in profit in the first half of this year, serving a cumulative 5.8 million insurance clients as of June 30.