Feb 25, 2019 (China Knowledge) - Online brokerage Up Fintech Holdings which operates the Tiger Trade App is looking to raise USD 150 million in its IPO on Nasdaq, according to its preliminary prospectus filed with the US Securities and Exchange Commission (SEC).
The company’s Tiger Trade App current offers brokerage and other trading services has yet to generate any profits but has seen its revenue doubling to USD 33.6 million last year. However, its losses have also widened to USD 44.3 million from USD 10.8 million in 2016.
Up Fintech counts Xiaomi as a major investor and strategic partner with a 14.1% stake while US-based Interactive Brokers Group also holds a 9.5% stake in Up Fintech.
Up Fintech currently claims to be the largest online broker focusing on global Chinese investors in US securities trading volume. The company offers US and Hong Kong securities on its platform and said that most of its customers are mainland Chinese citizens living in the country.
The company cites regulatory risk with the Chinese authorities as a major risk in its business outlook in the future as the China Securities Regulatory Commission (CSRC) has yet to approve any domestic or foreign institution to provide services for domestic investors to trade overseas except through stock connect schemes.
Up Fintech will be using its IPO proceeds for product development, sales and marketing activities, technology infrastructure, and other capital expenditures such as applying for licenses in other countries to expand its business.
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