Xiaomi-backed online broker UP Fintech significantly scales back IPO target

UP Fintech Holding Limited, known as Tiger Brokers in Asia, a platform that help Chinese retail investors trade stocks listed outside the Chinese mainland, is cutting back its fundraising target from

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Xiaomi-backed online broker UP Fintech significantly scales back IPO target

UP Fintech Holding Limited, known as Tiger Brokers in Asia, a platform that help Chinese retail investors trade stocks listed outside the Chinese mainland, is cutting back its fundraising target from US$150 million to U$91 million in its initial public offering in the United States, according to its updated prospectus.

Rival Futu Holdings Ltd, which is backed by Tencent Holdings Ltd, raised US$90 million in its US IPO last week, much lower than the preliminary US$300 million-target it had previously filed confidentially. The final sum was also substantially lower than Futu’s revised target of US$130.8 million in its official prospectus.

UP Fintech plans to offer a total of 13,000,000 American Depositary Shares, priced between US$5.00 and US$7.00 apiece.   Each ADS represents 15 Class A ordinary shares.

IB Global Investments LLC, one of UP Fintech’s major shareholders, has agreed to purchase a number of Class A ordinary shares worth up to US$7 million, through a private placement, which is equal to 7% of the total Class A ordinary shares to be issued in this offering.

Xiaomi Corporation, another principal shareholder, has indicated an interest in purchasing up to US$5 million of the ADSs in this offering at the initial public offering price, according to the filing.

UP Fintech intends to list on the Nasdaq Global Select Market, under the symbol “TIGR.”