Banking & Finance

Payment service provider Huifu said to raise US$200m in June Hong Kong IPO

Company’s net profit rose 12pc last year to US$20.69m while annual revenue surged 58pc. Has 2pc share of nation’s payment services market

PUBLISHED : Tuesday, 29 May, 2018, 8:28pm
UPDATED : Tuesday, 29 May, 2018, 10:18pm

Huifu Payment, the Shanghai-based payment service provider, is looking to raise about US$200 million through its initial public offering (IPO) in Hong Kong next month, according to sources close to the company.

It will become the first mainland China payment company to cash in on the booming digital payment industry in China, as the nation increasingly goes cashless.

The company will start trading on June 15 and shares will open for subscription on June 1, said the sources, who declined to be named.

Huifu focuses on small merchants’ payment and fintech services and applied to go public in a filing to the Hong Kong stock exchange in March.

It is the seventh largest payment services provider in China, with a market share of 2 per cent, it said then.

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Its net profit rose by 12 per cent last year to 132.8 million yuan (US$20.69 million), while its annual revenue increased 58 per cent to 1.73 billion yuan.

The company was one of the first to obtain a digital payment license from the People’s Bank of China, the nation’s central bank.

China’s payment market is expected to be worth 470 trillion yuan by 2021, or tripling the size in 2017, according to consultancy Frost and Sullivan.