Mar 08, 2019 (China Knowledge) - Tencent-backed Chinese brokerage Futu Securities is expected to raise USD 90 million in its IPO after managing to price at the top of its targeted range.
The company will sell 7.5 million American Depository Shares (ADS) at USD 12 each after marketing its shares in a range of between USD 10 to USD 12 per share.
Futu which provides services for mainland Chinese investors looking to trade foreign stocks initially targeted to raise USD 300 million while it filed for its IPO confidentially. The company claims to be the fourth-largest broker in Hong Kong based on revenue over the last six months through June last year, brokering about USD 116 billion worth of trades in 2018.
The company then later filed a target of USD 131 million when it officially made its filing to go public in February. This week, Futu Securities scaled back the size of its share sale after securing a deal to sell USD 70 million of stock to General Atlantic in private placement.
Futu’s listing is the latest following a number of Tencent-backed companies that have gone public in recent times which include Meituan-Dianping and Tencent Music Entertainment last year.
Tencent is said to have invested in more than 100 startups that are currently valued at above USD 1 billion or more with 16 having gone public last year.
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