Mar 13, 2019 (China Knowledge) - Online brokerage and financial advisory firm Tiger Brokers is looking to raise up to USD 91 million in a US IPO by issuing 13 million American Depository Shares (ADS).
The 13 million ADS will be used to represent 195 million Class A ordinary shares and will be priced at between USD 5 to USD 7 per share. The share offering could even increase to 14.95 million ADS should underwrites choose to exercise an option to purchase additional ADS.
The company will launch their fundraising roadshow this week and may list on the Nasdaq as soon as by the end of this month.
Tiger Brokers now claims to be the largest online broker focusing on global Chinese investors in terms of US securities trading volume with a market share of around 60% in 2017. The company operates its proprietary trading platform which allows investors to trade in equities and other financial instruments on the various exchanges around the world.
Tiger Brokers intends to use the IPO proceeds to set up new entities and apply for new operating licenses in other areas to expand its customer base. In addition, the new capital will also be used to meet capital adequacy ratios of regulators in other jurisdictions.
The company generates its revenue through commission fees for executing trades as well as interest income from services such as margin financing for trading activities.
Existing shareholders Xiaomi has since expressed an interest to purchase up to USD 5 million worth of the ADS offered while IB Global Investment also intends to purchase shares.
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