Internet finance platform Yanfu Group officially landed on Nasdaq on August 15th, with the transaction code “JFU”; the issue price was 9.5 US dollars per ADS, the opening price rose 14.5% to 10.88 US dollars, and the IPO raised funds were $85.55 million.
Editor’s note: This article is from WeChat public account “IPO knows” (ID: ipozaozhidao), author Uncle C, authorized to send cloth.
Yufu opened at $10.88, up 14.5% from the issue price. Then the stock price rose twice and triggered a blow. The increase once expanded by more than 41.89%, but the increase was not maintained. The stock price fell sharply and fell to the lowest level. The issue price is $9.50. Closed to the morning closing, the stock price of Yan Fu increased slightly by 0.84% to 9.58 US dollars, with a market value of 1.857 billion US dollars. In addition, if the full over-allocation is exercised, the final amount raised can reach $97.23 million.
It is worth noting that the company’s prospectus, which was updated two days before the listing, suddenly changed its listing from the NYSE to the Nasdaq.
Yongfu Group’s IPO public offering 6,750,000Share ADS, existing shareholders sell 2,150,000 ADS. Credit Suisse is the lead underwriter of IPO, and Haitong International, CLSA, CIC International Securities and Yanfu Securities are themselves deputy underwriters.
Among them, 2,150,000 ADSs sold by existing shareholders are all from Sun Lei, founder and CEO of Yanfu Group. As the final issue price is at the high end of the previously proposed issue difference (ADS 7.5 to 9.5 US dollars per share), Sun Lei will directly cash out $20.425 million.
Yu Fu said that the funds from this cash will be used to repay the loans issued by Baosheng Bank. The loan previously applied for from Baosheng Bank was mainly used to repay the related party loans owed to the company.
Before IPO, founder and CEO Sun Lei directly held 39.1% of the shares through Nine F Capital Limited, and the group’s legal representative, Anyi, held 23.3% through Nine Fortune Limited. Xiao Changxing, the founding partner of Weihun Capital, holds 7.4% through DFM Capital Ltd. as the third largest individual shareholder.
In addition, Jiang Nanchun, Chairman of Focus Media, holds 5.7% through JAS Investment Group Limited, which is wholly owned by Jiang Nanchun and the fourth largest shareholder of Yanfu Group; and Xu Yuzhi, Chairman of Heji Group, Xu Zhang Junsheng, chairman of the board and Hehe Holding Group, holds 3.8% and 2.1% of the shares respectively.
After IPO, Sun Lei’s direct shareholding ratio fell to 36.8% and had 70.2% of voting rights. Any Fan and Xiao Changxing each had 9.4% and 3.0% of voting rights; Jiangnanchun continued to hold 5.5% of shares. And 2.3% of voting rights.
Beifu Group, established in 2006, has successively established more than 10 independent wholly-owned or controlled subsidiaries, with five major business segments: digital technology, digital accounts, digital inclusive, digital wealth, and digital international. The product brands include 玖 Fu Technology, Fu Fu Wallet, Wukong Wealth Management, Yan Fu Securities (Hong Kong), Fortune Wealth (Hong Kong), etc., and holding or participating in insurance brokerage, fund sales, banking, financial leasing and other licensed institutions.
The official website of Yanfu Group shows that as of June 2019, the cumulative number of registered users of each sub-platform exceeded 80 million. According to the report of Oliver Wyman, as of December 31, 2018, the company is the largest in terms of the outstanding loan balance of all market lending platforms in China.
Financial data show that in 2016, 2017 and 2018, the net income of the Group was 2.261 billion, 6.742 billion and 5.557 billion yuan; the net profit was 162 million, 724 million and 1.975 billion yuan respectively. .
As of March 31, 2019, the net income of Yanfu Group increased from 1.092 billion yuan in the same period of 2018 to 1.204 billion yuan, and the net profit increased from 291 million yuan to 527 million yuan. Excluding the impact of equity incentive spending, the adjusted net profit increased from 412 million for the three months ended March 31, 2018 to 561 million yuan for the same period in 2019.
At the end of 2016, 2017, and 2018, the number of registered electronic accounts on the Richtek platform was 27.6 million, 51.6 million, and 72.4 million, respectively, an increase of 87% and 40.2% from the previous year. As of March 31, 2019, the number of registered users of the platform was 76.7 million, a year-on-year increase of 6.0%.
However, due toTo the negative impact of policy regulation, the number of active borrowers on the platform in 2018 decreased by 36.3% from 2017 to approximately 2.3 million. As of March 31, 2019, the number of active borrowers on the platform was 600,000. Compared with 1 million in the same period of 2018, it decreased by 40.0%. In contrast, the number of active borrowers in the 2017 platform increased from approximately 1.3 million in 2016 to approximately 3.6 million, an increase of 171.5% year-on-year.
At the same time, the number of people buying investment products has declined in the past year due to the regulatory environment. In 2018, the number of active investors on the platform decreased by 28.6% to 900,000. For the three months ended March 31, 2019, the number of active investors on the platform was 300,000, a decrease of 31.1% from 400,000 in the same period in 2018. In 2017, the number of active investors was 1.2 million, an increase of 66.5% from the 700,000 in 2016.
In addition, from the overdue rate indicator, although the performance of the Group is gradually optimized, the overall asset performance is still not good. (See: Research | Jiu Fu will be listed on the NYSE: asset quality and risk control level as the main risk points )
The Group believes that the funds raised will be used for five major purposes: first, to strengthen the operation and development of communities within the ecosystem and the synergy of ecosystems; and second, to continue to expand product offerings, including providing more Consumer scenario loan products, online wealth management products, and fostering user loyaltyThird, for R&D investment, especially artificial intelligence and big data technology; Fourth, for international expansion, including investment plans in Hong Kong and Southeast Asia, and applying for additional licenses to help implement international business strategies; Use and strategic investment.