SINGAPORE – UP Fintech Holding Limited (NASDAQ: TIGR), an online brokerage serving global investors, has announced the pricing of its public offering at $6.25 per American Depositary Share (ADS). The offering includes 15 million ADSs, each representing 15 shares of Class A common stock. Underwriters have a 20-day option to purchase an additional 2.25 million ADSs at the offering price, less discounts and commissions. subscription.
The offering is expected to close on October 24, 2024, subject to standard closing conditions. UP Fintech plans to raise approximately $90 million in net proceeds, which the company plans to use to strengthen its capital base and support its business development initiatives.
Deutsche Bank AG (NYSE:), China International Capital Corporation Hong Kong Securities Limited and US Tiger Securities, Inc. are joint book-running managers for the offering. The offering is being made by means of an automatic registration statement filed with the U.S. Securities and Exchange Commission (SEC) and available on the SEC’s website.
UP Fintech, known for its mobile and online trading platform, allows customers to trade stocks and other financial instruments on global exchanges. The company emphasizes a mobile-first strategy, focusing on user experience and offering services such as margin financing, IPO subscriptions and investor education.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. No such offer, solicitation or sale shall be made in any state or jurisdiction in which such activity would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on a press release from UP Fintech Holding Limited. The Company’s forward-looking statements involve risks and uncertainties, and actual results could differ materially due to various factors, including the Company’s growth strategies, market trends, competition and the regulatory environment. UP Fintech’s SEC filings provide more detail on these risks.
Furthermore, UP Fintech Holding Ltd. has undergone several important developments. Citi downgraded UP Fintech stock from buy to sell and adjusted the price target to $5.50. The move follows UP Fintech’s announcement of a proposed public offering of 15 million American Depositary Shares (ADS), which could potentially increase the company’s equity from 22% to 25% and result in a dilution of approximately 10% of the company’s profits by ADS. for fiscal year 2025 estimates.
Simultaneously, UP Fintech reported a record second quarter of 2024, with total revenue reaching an all-time high of $87.4 million. The company added 48.9 thousand new paying customers during this period, showing strong growth. However, the company’s second-quarter non-GAAP net income showed a significant decline due to a one-time provision of $13.2 million for a former stock pledging business in Hong Kong.
These recent developments led Citi to revise its price target for UP Fintech shares from $6.49 to $5.00, maintaining a Buy rating on the stock. The company expects further strength in transaction volumes and revenue momentum in the third quarter. Despite challenges due to loss provisions and market uncertainties, UP Fintech remains optimistic about its ability to overcome potential challenges and continue its growth momentum.
InvestingPro Insights
As UP Fintech Holding Limited (NASDAQ: TIGR) continues its public offering, recent data from InvestingPro sheds light on the company’s financial position and market performance. The company’s market capitalization stands at $1.01 billion, reflecting its significant presence in the online brokerage industry.
UP Fintech demonstrated strong revenue growth, with a 32.76% increase in quarterly revenue in Q2 2024. This growth aligns with the Company’s plans to use proceeds from the offering for the business development, potentially fueling further expansion. The company’s gross profit margin of 82.74% over the trailing twelve months ending Q2 2024 indicates a robust core business model, which could be attractive to investors considering the new stock offering.
InvestingPro Advice highlights that UP Fintech has been profitable over the past twelve months, with analysts forecasting continued profitability this year. This positive outlook could support investor confidence in the company’s $6.25 per ADS offering price. However, it is worth noting that the stock is trading at a high earnings multiple, with a price-to-earnings ratio of 38.34, suggesting that investors are pricing in expectations of strong future growth.
The stock’s recent performance has been particularly noteworthy, with InvestingPro data showing a return of 90.83% over the past six months. This strong dynamic could have influenced the timing and price of the public offering. However, investors should be aware that UP Fintech stock typically trades with high price volatility, as noted by another InvestingPro tip.
For those wanting a more in-depth analysis, InvestPro offers 8 additional tips for UP Fintech, providing a more comprehensive view of the company’s prospects and challenges.
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