The prospectus did not disclose the pricing terms of the listing. Meili plans to float its shares on the New York stock exchange under the symbol “ML.”
The Chinese auto financing company, founded in 2014 and based in Beijing, is seeking to go public in the United States after it realized profitability last year with a net income of $46.4 million according to the prospectus.
Unlike other auto service platforms in China, such as Sequoia and Tencent-backed Guazi.com and Nasdaq-listed Uxin Ltd, which not only provide auto financing but also other services like auto trading, insurances, and online auctions, Meili specializes in the country’s nascent yet fast-growing used car financing market. The market grew at a compound annual growth rate (CAGR) of 81.3% from 2013 to $21.32 billion) in 2018, according to a Frost & Sullivan report cited in the prospectus.
Meili said that the used car financing market presents “massive untapped potential for financial solution providers,” driven by China’s rising disposable per capita income, underserved prime borrowers, a dispersed dealer network, as well as the lack of technological and risk management capabilities.
The company helps consumers access auto loans from financial institutions. It facilitated a total of 206,116 used car financing transactions in 2018, ranking among the top three used car financing solution providers in China, per the Frost & Sullivan report.
In the first half of 2019, Meili facilitated 112,682 used car financing transactions with a transaction value of $1.12 billion, up 43.1% from the transaction value in the same period in 2018.
Read more here
Join us November 13-15 for the Property Portal Watch Conference Madrid 2019.