360 Finance's IPO: What You Need To Know

Chinese fintech company, 360 Finance Inc. has filed to begin trading on the NASDAQ under the ticker symbol “QFIN.”

The Details

360 Finance has experienced significant and consistent growth, with a compound quarterly growth rate of 80.4 percent in loan origination and a rate of 90.5 percent in cumulative users with approved credit. Outstanding loan balances exceed $34 billion, according to the F-1 filing.

The company plans to offer 3 million American depositary shares at a price of $16.50. The IPO is intended to create a public market for company shares and to encourage employees with incentives and increased capital.

Editor's note: The stock opened for trade at 10:27 a.m. ET at $16.81 per share.

Forty percent of proceeds will be used for brand promotion, while 30 percent will go toward research and development of the team. The remainder will dispersed among potential acquisitions and investments, the F-1 stated.

360 Finance’s main underwriters include Goldman Sachs and Citigroup Global Markets.

The Product

360 Finance provides online consumer products to 6.4 million borrowers.

“Our core product is an affordable, unsecured digital line of credit which our borrowers typically utilize for consumption spending and often as a supplement to credit card debt,” the company said in the SEC filing.

“To apply, potential borrowers complete a simple online application and, for approximately 95 percent of recent credit applications, a fully automated credit decision is rendered. Approved borrowers are provided access to funds typically within five minutes and may select the loan structure best suited to their consumption needs.”

The company’s close partnership with 360 Group bolsters marketing and brand building through the use of app stores and search engine optimization, according to the F-1. 

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