9F IPO: What You Need To Know

A Chinese digital financial accounting platform is part of the IPO slate for the week.

The IPO Terms

Beijing-based 9F Inc. is planning a 8.9-million share IPO, with the company offering 6.75 million ADSs and certain selling shareholders offering 2.15 million ADSs, according to a F-1/A filing.

Each ADS represents one Class A ordinary share of 9F.

The company has applied for listing the ADSs on the NYSE under the ticker symbol JFU.

Credit Suisse is the lead underwriter for the offering, while Haitong International, CLSA, China Investment Securities International and 9F Primasia Securities are co-managing the offering.

The Company

9F is a digital financial accounting platform that integrated and personalizes financial services in China. It offers a host of financial products and services such as loan products, online wealth management and payment facilitation under a single digital financial account.

Based on the outstanding loan balance as of Dec. 31, 2018, 9F is the largest online consumer finance platform, the company said, citing Oliver Wyman.

Its One Card – a digital alternative to conventional personal finance offering – connects borrowers, investors, financial partners and merchant partners. Its proprietary online shopping platform is called One Card Mall.

The Finances

9F reported net revenues of $827.94 million in the fiscal year ended Dec. 31, 2018, up about 21% year-over-year. For the three months ended March, revenues grew about 10% to $179.40 million.

The net income for the fiscal year 2018 jumped about 173% to $294.31 million, while that for the March quarter of 2019 rose 81% to $78.58 million.

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