Xiaomi-backed online broker that serves Chinese stock traders aims to raise US$150 million in Nasdaq IPO
- Xiaomi, one of the world’s largest smartphone makers founded by Chinese entrepreneur Lei Jun, owns 14.1 per cent of up Fintech Holding
- Interactive Brokers Group, one of the world’s biggest online brokers, has a 9.5 per cent stake
An online broker serving Chinese investors, Up Fintech Holding, is aiming for to raise US$150 million in an initial public offering on the Nasdaq Global Select Market, according to a preliminary prospectus filed with the US Securities and Exchange Commission last night.
Xiaomi has a 14.1 per cent stake in Up Fintech while Interactive Brokers Group, one of the largest electronic brokers in the United States, has a 9.5 per cent stake. The biggest shareholder is its founder, a former Chinese internet firm employee Wu Tianhua.
Up Fintech, founded by Wu, who used to work at NetEase, has yet to generate any profit. The Beijing-based firm said its revenue nearly doubled last year to US$33.6 million, but net loss widened to US$44.3 million from 2016’s US$10.8 million, according to a preliminary prospectus filed with the SEC.
The company said it is the largest online broker focusing on global Chinese investors in US securities trading volume, with a market share of approximately 58.4 per cent in 2017, citing information by iResearch.