Chinese online micro-leading company Qudian (NYSE: QD) is about to raised $900 million in its initial public offering at the New York Stock Exchange on Wednesday.
Qudian’s American depositary shares were priced at $24, above the expected range of expected range of $19-$22 per share. The company is offering 37.5 million shares. Based on that, the company will have a market value of $7.9 billion, making it the biggest Chinese company that listed in the U.S. this year.
Founded in 2014, Qudian offered short-term micro loans through its mobile app to China's college students and young white-collar workers who are not able to affords things like laptops, smartphones and other consumer electronics or premium-priced apparel.
The company said it now provided about $5.6 billion credit to 7 million active borrowers.
Qudian became profitable in 2016. The company earned $85 million on total revenue of $213 million. In the first six months of this year, the company net earned $144 million on revenue of $270 million.
Qudian is backed by Alibaba Group Holding Ltd.’s financial affiliate Ant Financial. It also partnered with Ant Financial’s online payment platform Alipay to distribute cash and collect repayments.
Qudian’s shares jumped as much as 31 percent to $31.35 per share after it was traded in NYSE.
Morgan Stanley, Credit Suisse, Citigroup, CICC and UBS are joint bookrunners on the IPO.