Chinese home equity loan service provider CNFinance makes NYSE debut

2018-11-08 09:34

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CNFinance Holdings Limited, a home equity loan service provider in China, debuted on the New York Stock Exchange (NYSE) on Wednesday, trading under the ticker symbol of "CNF."

CNFinance priced its initial public offering of 6,500,000 American Depositary Shares (ADSs), each representing 20 ordinary shares, at 7.50 U.S. dollars per ADS for a total offering size of 48.75 million dollars, assuming the underwriters do not exercise their option to purchase additional ADSs.

The underwriters have been granted an option, exercisable within 30 days from the date of the final prospectus, to purchase up to 975,000 additional ADSs at the initial public offering price less the underwriting discount.

Roth Capital Partners is acting as sole book running manager for the offering and Shenwan Hongyuan Securities (H.K.) Limited is acting as co-manager for the offering.
CNFinance closed at 7.6 dollars apiece at Wednesday's closing.

Zhai Bin, the company's chairman and chief executive officer, said listing on the NYSE is a fresh start for CNFinance's further development.

Zhai sees great potential in the Chinese market and is confident that the company will grow in a fast pace.

"Potentially the business in China's first- and second-tier cities is trillions of dollars in size," he said.

Founded in 2006, CNFinance facilitates loans by connecting micro- and small-enterprise (MSE) owners with its funding partners.

The company's primary target borrower segment is MSE owners who own real properties in first- and second-tier cities in China.

The loans the company facilitates are primarily funded through a trust lending model with its trust company partners who are well-established with sufficient funding sources and have licenses to engage in lending business nationwide.

The company's risk mitigation mechanism is embedded in the design of its loan products, supported by an integrated online and offline process focusing on risks of both borrowers and collateral and further enhanced by effective post-loan management procedures.
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