Chinese e-commerce service platform WeTrade eyes $121m in Nasdaq transfer

REUTERS/Eric Thayer

WeTrade Group, a membership-based platform for e-commerce services in China, is looking at raising up to $121 million as it moves its listing from the US OTC board to the Nasdaq Stock Market.

The company’s filing with the US Securities and Exchange Commission (SEC) is heavily redacted and the $121 million is likely a placeholder amount specified to calculate the registration fee.

WeTrade’s move to Nasdaq came after the company, which has a market cap of $1.7 billion, met the stock exchange’s transfer conditions in November. It plans to list under the symbol WETG.

Based in Beijing and founded in 2019, the company booked $3 million in revenue for the 12 months ended September 30, 2020. It provides technical services and solutions through its membership-based social e-commerce platform and generates revenue from service fees charged for transactions.

“Our goal is to provide technical and auto-billing management services for 100 million micro-business online stores in China through big data analytics, machine learning mechanism, social network recommendations, and multi-channel data analysis,” the company said in its filing.

WeTrade plans to utilise the proceeds from its Nasdaq listing to fund its R&D and technology development, marketing and talent recruitment in China, strategic investment in service providers, among others.

The company’s listing comes as its microbusiness cloud intelligence system YCloud has expanded in Mainland China, Hong Kong, Singapore, the Philippines, and other Southeast Asian countries. WeTrade plans to also expand into these markets.

“We expect to utilise the YCloud system to establish a global strategic cooperation with various social media platforms, including Kakao Talk, Line, Whatsapp, Ohho, and Bluechat,” it added.

WeTrade said its products are currently serving the e-commerce industry, tourism industry, hospitality industry, and live-streaming/short video industry.

The listing also comes as Nasdaq has removed shares of four Chinese construction and manufacturing companies for indexes as part of new restrictions on IPOs.

In May last year, Nasdaq unveiled the new restrictions, requiring companies from some countries, including China, to raise $25 million in their IPO or, alternatively, at least a quarter of their post-listing market capitalisation, according to sources.

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).   

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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.