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CNFinance's IPO: What You Need To Know

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CNFinance's IPO: What You Need To Know
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This Week's IPO Outlook: A Chinese Home Equity Lender

Chinese lender CNFinance is set to begin trading on the New York Stock Exchange under the ticker symbol “CNF.”

The Details

As of June 2018, the company has over 10 years of loan service experience, 75 branches and sub-branches in over 40 cities and a loan origination volume growth of 106 percent, according to the F-1 filing.

CNFinance provided home loans for roughly 13,000 borrowers in 2016 and 23,000 in 2017, or an increase of 82 percent.

“The extensive local knowledge and resources we have acquired while building our business infrastructure distinguish us from other market players. For the six months ended June 30, 2018, we originated home equity loans with an aggregate principal amount of RMB5.8 billion.”

The company plans to raise $52 million through the offering of 6.5 million American depositary shares. Shares are estimated to fall between the initial pricing range of $7.50 and $8.50.

The main underwriters of the IPO are Roth Capital Partners and Shenwan Hongyuan Securities.

The Company

CNFinance is the second-largest home equity loan service provider among non-traditional institutions in China, according to the company's F-1. 

The company facilitates loans by connecting micro and small enterprise owners with funding partners.

CNFinance aims to make loans with a quick turnover and reasonable qualifications, the company said. 

“Our standardized and integrated online and offline credit application and assessment process shortens the time of loan disbursement to as fast as 48 hours from submission of a qualified loan application with all necessary documentation, providing expeditious financing solutions to MSE owners.”

By going public, CNFinance said it hopes to further broaden its customer base, diversify its funding sources, expand its services and enhance its technology and data analytic capabilities.

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Posted-In: China CNFinance F-1News Previews IPOs Top Stories Trading Ideas Best of Benzinga

 

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