Lexinfintech cuts U.S. IPO size in the wake of Beijing cracking down on micro-lenders

Photo: REUTERS/Brendan McDermid/Files

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.

Also read:

China online lender LexinFintech said to mull fate of $500m IPO

Reuters

Singapore Reporter/s

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

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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.