The listing process was put on hold, the direct reason is that the underwriters Deutsche Bank services are facing the end, and the underlying reason is the compliance pressure in the context of strict industry regulation.
According to the IPO, I knew the news, and the EPO payment company went to the US IPO process to be shelved. In 2018, Epro paid to prepare for listing in Hong Kong, and this year it changed its listing location to the US, but now the listing process has changed again.
Source|This article was written by IPO knows (ID:ipozaozhidao) , the views in the text are for reference only
Edit|C Uncle
typesetting | C Uncle
According to C Uncle, Epro pays for the listing process, the direct reason is that the underwriters Deutsche Bank service is facing the end, the deep reason is the background of industry supervision Under the pressure of compliance.
Deutsche Bank (hereinafter referred to as “Deutsche Bank”) previously announced the withdrawal of global stock trading business and reduced the size of investment banks. The underwriters that Epro chose previously were Deutsche Bank.
C t had specifically written article analyzed the case of Deutsche Bank cuts (details: Deutsche Bank major restructuring: lay off 20% of the investment bank the size is reduced ) and a profile of YeePay US IPO (details: Epro pays to abandon the Hong Kong listing plan and switch to the US market:Payment industry ranked eighth).
On July 7, Deutsche Bank announced that it will restructure its structure on a large scale, including exiting stock sales and trading operations, reducing the size of investment banks, and reducing the use of funds for fixed-income sales and trading operations. At the same time, about 18,000 people are laid off globally, equivalent to 20% of the total number of employees, and the heads of investment banking, retail and compliance departments are leaving.
The move by Deutsche Bank is because its investment banking capabilities have fallen far short of Wall Street giants such as JP Morgan Chase and Goldman Sachs, and will focus on other core businesses in the future.
This has a direct impact on Epro Payments. Previously, Epro paid to go to the US IPO, Deutsche Bank and Macquarie as joint sponsors.
According to Uncle C, Epro Payment has not yet made a decision on the choice of its new underwriter.
The old payment institution, ranked eighth in the industry
Epro Payments Co., Ltd. was established in July 2003 with a registered capital of 100 million yuan. It is headquartered in Beijing and has offices in Shanghai, Guangdong, Jiangsu, Fujian, Guangxi, Tianjin, Yunnan, Sichuan, Zhejiang, Shandong and Shaanxi. 30 branch offices.
Epro paid in May 2011 to obtain the “Payment Business License” issued by the central bank, becoming one of the first third-party payment institutions to receive the “Payment Business License” issued by the central bank. The business license covers Internet payment and mobile. Telephone branchPayment, currency exchange, bank card receipt and mobile phone payment. Epro Pay focuses on industry payments and has provided tailor-made industry solutions for games, entertainment, aviation, telecom, executive education, insurance, funds, FMCG, e-commerce logistics and many other industries.
The main business of Epro Pay is to develop B-end, and there are also large enterprises such as Baidu, JD.com and China International Airlines. According to the data at the end of 2017, the transaction amount of the Epro payment platform is 200 billion yuan. In the national third-party payment ranking of the 2017 online loan home, Epro is ranked eighth among all third-party organizations.
Epro’s product system is divided into four major segments: basic services generated during the process of acquiring B-side merchants, basic products for payment, development of a complete payment plan, access to customers, and provision based on the needs of an industry. Deep customization of industry solutions. Matching its core strategy of “focusing on key industries”, Epro Payments covers a wide range of industries including retail, finance, travel, insurance and more. Taking the airline business department as an example, Epro pays for the aviation ecosystem, deepens the industry chain segmentation, provides diversified payment solutions, and outputs sub-accounting system, EPOS cardless payment, wallet and account payment.
Compliance into Epro Pay IPO Challenge
It is worth noting that although Epro Pay has a small first-mover advantage in some industry payments, it has repeatedly encountered problems in regulating its operations.
In 2019, Epro Payments has received a fine of over 10 million yuan. In March 2019, due to violations of clearing management regulations and non-financial institution payment service management regulations and other relevant regulations, Epro paid a fine of 9,942,300 yuan; thereafter, Epro payment failed to fulfill customer identification obligations and failed to comply It was required to report a suspicious transaction report and was fined 600,000 yuan. At the same time, a fine of 20,000 yuan was imposed on a related responsible person.
This is the fourth consecutive year that Epro has received a central bank ticket. According to incomplete statistics, in 2014, due to the illegal operation of the order, the company was asked to stop the bank card acquiring business in 7 provinces and cities such as Henan, Jiangxi, Jilin and Shanghai, and stopped the new merchants nationwide for a period of time. One year; in 2015, a fine of 40,000 yuan was imposed for violation of non-financial institution payment; in 2016, a total of 52.861 million yuan was fined for violating relevant liquidation management regulations; in 2017, due to violation of the relevant legal system of bank card acquiring business, Give a warning and a fine of 200,000 yuan; in 2018, fail to report the balance of payments statistics in accordance with regulationsHe was fined 140,000 yuan for failing to submit financial accounting reports in accordance with regulations.
In addition, Uncle C searched for “Yibao Payment” as a keyword search in the complaints. Most of the users complained about the contents of Epro’s payment related to “714 Antiaircraft” and “No Deduction”. As for last month, the number of complaints filed by Epro was 808, ranking 15 and the solution was 665. The resolution rate was 82.3%, which was much lower than that of other peers.
According to media reports, Epro pays for violations of the “714 Antiaircraft” platform and is suspected of providing payment channels for illegal foreign exchange companies.
For Epro Payments, compliance has become a major obstacle in the IPO process.
< p>The founder and CEO of Yibao Payments, Tang Bin, has rarely made public appearances recently. In the public report, only one charity event was held in January this year, and an event sponsored by Yibao and local government in July.