SINGAPORE – UP Fintech Holding Limited (NASDAQ: TIGR), known for its online brokerage services for global investors, announced plans to offer and sell 15 million American Depositary Shares (ADS), with each ADS representing 15 Class A common stock of the company. This decision is subject to market and other conditions, including an underwritten public offering. Additionally, the underwriters will have the opportunity to purchase up to 2.25 million additional ADSs within 20 days of the date of the prospectus supplement.
The Company aims to use the net proceeds from this offering to strengthen its capital base and support its business development initiatives. Deutsche Bank AG (NYSE:), Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited and US Tiger Securities, Inc. have been appointed joint book-running managers for the proposed ADS offering.
The offering will be made pursuant to an automatic shelf registration statement previously filed with the United States Securities and Exchange Commission (SEC). Relevant documents, including a preliminary prospectus supplement and an accompanying prospectus, are available on the SEC’s website. The final prospectus supplement will also be filed and made available on the SEC’s website in due course.
UP Fintech, also known as Tiger Brokers, provides a proprietary mobile and online trading platform that allows investors to trade stocks and other financial instruments on various international exchanges. The company is known for its mobile-first strategy, which has been instrumental in improving user experience and expanding its customer base. UP Fintech offers a range of brokerage and value-added services, such as trade order placement and execution, margin financing, IPO subscriptions, ESOP management, investor education and support customer.
This press release includes forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company’s current expectations regarding future events, including its strategic plans and operational and its financing intentions. However, these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected.
The information in this article is based on a press release from UP Fintech Holding Limited.
Furthermore, UP Fintech Holding Ltd. faced a significant reduction in its non-GAAP net income in the second quarter, down 65% from the previous quarter and 66% from the same period last year. The decrease was mainly due to a one-time provision of $13.2 million for an existing share pledging business in Hong Kong. However, excluding this provision, UP Fintech’s operating profit showed strong growth, up 30.9% from the previous quarter and 68.2% from the same period last year , fueled by strong trading volume and the expansion of its mutual fund servicing license.
The company also reported a huge increase in new paying customers, adding 48,900 in the second quarter alone. This growth represents an increase of 69.8% quarter-over-quarter and 68.6% year-over-year. These additions in the first half of 2024 represent 52% of management’s annual forecast of 150,000 new paying customers.
UP Fintech’s second quarter of 2024 also saw record revenue, reaching an all-time high of $87.4 million. This was accompanied by a 121% increase in client assets from the previous year, totaling $38.2 billion. Despite the challenges posed by the Hong Kong equity pledge loss provision, the company expects further strength in trading volumes and revenue momentum in the third quarter.
Citi revised its price target for UP Fintech shares to $5.00 from $6.49 previously, based on these recent developments. This adjustment was made using a discounted cash flow model, taking into account the most recent earnings revision. Despite the reduced target, Citi maintains a Buy rating on the stock, albeit with a High Risk rating.
InvestingPro Insights
UP Fintech Holding Limited’s (NASDAQ: TIGR) decision to offer 15 million American Depositary Shares comes at a time when the company is experiencing significant market momentum. According to InvestingPro data, TIGR has shown impressive price performance, with a return of 101.63% over the past month and a return of 131.78% over the past six months. This strong market performance aligns with the company’s desire to capitalize on investor interest and raise capital for the development of its activities.
The company’s financial health appears strong, with revenue growth of 12.96% over the trailing twelve months and notable quarterly revenue growth of 32.76% in Q2 2024. TIGR’s gross profit margin s stands at a good level of 82.74%, which indicates effective cost management in its core activities. .
InvestingPro Tips highlights that TIGR trades at a high earnings multiple, with a P/E ratio of 43.73. This valuation suggests that investors have high growth expectations for the company, which may be supported by analysts’ predictions that the company will be profitable this year. The stock’s high price volatility, as noted in another InvestingPro tip, could be attractive to investors looking for high potential returns, as evidenced by strong performance over different time periods.
It should be noted that TIGR does not pay a dividend to shareholders, instead focusing on growth and reinvestment. This strategy appears to be paying off, given the company’s profitability over the past twelve months and its plans for further business development.
For investors looking to better understand the potential of UP Fintech, InvestingPro offers additional advice and information. Actually there are 8 more InvestPro Advice available to TIGR, which could provide valuable context for the company’s current offering and future prospects.
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