360 Finance files for USD 200 mln U.S. IPO
Oct 30, 2018 (China Knowledge) - Leading digital consumer finance platform and finance partner of 360 Group, 360 Finance has filed for U.S. IPO last week, seeking to raise USD 200 million. The company will be listing its stock under the ticker QFIN at the New York Stock Exchange.
The company provides tailored online consumer finance products to prime, underserved borrowers with assets funded by their primarily partners.
Since its inception to 30 September 2018, the company has facilitated over USD 14.3 billion in loans to 6.4 million borrowers. The success of the company can be attributed to the company’s ability to deliver value to its funding partners with their high-quality borrower base and platform tools provided such as borrower evaluation and enhance risk management.
According to Oliver Wyman, the company is able to deliver value in the form of M3+ delinquency rate of 0.6%, and annual returns typically over 6.5% to funding partners, which are materially higher than traditional investment and lending opportunities.
Loan facilitation service fees and post-origination services fees as a percentage of loan origination made up a large chuck of the company’s revenue.
The company has recorded a YoY growth of 5939.8%, with net revenue generated for the six months ending on 30 June 2018 being USD 112.3 million, compared to RMB 12.3 million for the same period in 2017.
40% of net proceeds from IPO will be used in brand promotions to facilitate the company’s long-term brand building and marketing efforts, with the other 30% being used in research and development and its hiring of talents into the company. The remaining funds will be subsequently used in other general corporate purpose in areas such as strategic investment and potential acquisition.
Goldman Sachs (Asia) L.L.C. and Citigroup Global Markets Inc, are the underwriters for this IPO.
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