As Fugin Fintech, a Chinese company focused on auto lending, prepares to start their IPO they have filed an amendment which changes the IPO terms and lowers their original target.
The Beijing company, which facilitates peer-to-peer, auto-secured lending, initially filed for a $51 million IPO in August, seeking to sell up to 8.5 million American depositary shares. The post-effective update, filed recently, shows a target of $20 million and a per share price of $5. Fuqin is now seeking to sell from 2 million to 4 million shares.
The company has also provided updated financials. It said revenue for the 12 months through December reached $30 million, up 69 percent year-over-year. Its operating expenses last year also soared, however, rising 83 percent to $31.4 million. The company reported a net loss of $1.4 million for 2018 in contrast to income of $589,000 in 2017.
Fuqin began its lending operations in 2014 matching borrowers and lenders and expanded into the online auto finance marketplace two years later. Through its offices, Fuqin conducts promotion, assistance with lending applications, and installation of GPS devices on automobiles. Its services are marketed to individuals, micro-, small-, and medium-sized enterprises, and sole proprietors. All loans Fuqin issues are secured by the borrowers' cars.
Fuqin has 168 offices in third-, fourth-, and fifth-tier cities in northern China. Although previously the majority of its business – 58 percent in 2017 – was conducted offline, the gears shifted to online operations last year. As of Dec. 31, Fuqin had facilitated $499.4 million in loans online out of the total of $697.6 million. During the full year 2018, it facilitated $358.3 million in loans overall.
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