Beijing-based online brokerage and financial advisory firm Up Fintech Holdings, also known as Tiger Brokers, is seeking to raise up to $91 million by offering 13 million American depositary shares (ADS) in its initial public offering in the US.
In an amended US SEC filing, Tiger Brokers said it plans to offer 13 million ADSs, representing 195 million Class A ordinary shares, at between $5 and $7 a share. The offering could increase to 14.95 million if the underwriters exercise their option to purchase additional ADSs.
The company, which is backed by veteran investor Jim Rogers, said it will launch the roadshow this week and could list on the Nasdaq at the end of this month under the symbol TIGR.
One of its principal shareholders, Xiaomi Corporation, has indicated an interest in purchasing up to $5 million worth of ADSs in the offering while IB Global Investment, an existing shareholder, also intends to purchase shares.
Launched in 2015, Tiger Brokers claims to be the largest online broker focusing on global Chinese investors in terms of US securities trading volume. It accounted for a market share of approximately 58.4 per cent in 2017, according to an iResearch Report.
The company said its proprietary trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world.
The company earlier said it will use the proceeds from the IPO to set up entities and apply for operating licenses in multiple jurisdictions to expand its customer base. It also seeks to acquire or invest in technologies and businesses that complement its current business.
The IPO proceeds will also be used to satisfy the increased capital adequacy requirements of the New Zealand Stock Exchange or regulators in other jurisdictions.
Tiger Brokers generate revenues primarily by charging its customers a commission fee for trading securities as well as earning interest income or financing service fees arising from or related to margin financing provided by the company or third parties to its customers for trading activities.
Its total revenues were $5.5 million, $16.9 million, and $33.6 million in 2016, 2017 and 2018, respectively. During the said years, the company recorded net losses of $10.8 million, $7.9 million, and $44.3 million, respectively.
The company became a unicorn startup in China in July after closing an $80-million Series C round at a valuation of $1.06 billion.
The online brokerage industry focusing on global Chinese investors is highly concentrated, yet competitive. According to the iResearch Report, the market size of the online brokerage industry focusing on global Chinese investors in terms of both the US and Hong Kong stock trading volume experienced rapid growth over the past three years.
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