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No lending hand needed for LexinFintech IPO
Posted on Tuesday, 14 November 2017 15:01
Another Chinese online consumer lender, this time JD.com-backed LexinFintech Holdings, is trying its hand at an initial public offering (IPO) in the US after filing confidentially in July.

The prospectus submitted to the securities regulator by the Cayman Islands-incorporated fintech player has a USD 500.00 million placeholder for a sale of American depository shares on Nasdaq.

Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank Securities and China Renaissance are handling the overseas listing by the company known for its Fenqile platform.

Proceeds are earmarked for general corporate purposes, which may include investment in product development, sales and marketing activities, technology infrastructure, capital expenditures and funding acquisitions.

However, certain Chinese regulations regarding the purchase of domestic companies by foreign investors could provide a stumbling block to pursuing growth in the country.

LexinFintech is the offshore holding company of an online consumer finance platform in China billed as the leader in terms of outstanding principal balance of loans originated, as of 30th June 2017.

The group, which is focused on educated young adults, had about 3.00 million active customers in 2016 and 3.30 million in the nine months ended 30th September 2017.

It offers personal instalment loans, part repayment purchase credit and other products that are matched with diversified funding sources, including individual investors on its Juzi Licai platform.

So far this year there have been 109 announced or completed IPOs globally by companies operating within the data processing, hosting and related services segment, Zephyr, the M&A database published by Bureau van Dijk, shows.

Among the largest by value are Qudian, a Cayman Islands-incorporated fintech player which raised USD 900.00 million when it listed in New York last month.

Other microlenders which have either filed or gone public this year include PPDAI and Hexindai, according to Zephyr.

© Zephus Ltd