Chinese consumer lending firm Lexinfintech has slashed the size of its initial public offering to between $108 million and $132 million – a move that comes in the wake of a crackdown by Beijing on fast-growing online micro-lenders.
Lexinfintech, which focuses on loans to educated young adults between 18 and 36 including loans for e-commerce purchases, had been planning to raise some $500 million in its IPO.
In a U.S. filing on Wednesday it said it would sell 12 million American Depositary Shares at a price of between $9 and $11 each. The company did not give the reason for the reduction.
A source with direct knowledge of the situation told Reuters this month that Lexinfintech would delay the pricing of its planned Nasdaq IPO to conduct more due diligence.
The company did not respond immediately to a Reuters request for comment.