Yirendai has filed an amended F-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). Each American depositary shares (ADS) represents two shares of Yirendai, and the company is offering 7.5 million ADSs in an expected price range of $9 to $11 per ADS. At the maximum price the offering is valued up to $82.5 million. The company intends to list its ADSs on the New York Stock Exchange under the symbol YRD.
The underwriters for the offering are Morgan Stanley, Credit Suisse, China Renaissance and Needham.
This is a leading online consumer finance marketplace in China, connecting investors and individual borrowers, according to iResearch. Yirendai facilitated over $1.376 billion in loans from its inception in March 2012 through the end of September 2015.
The company’s online platform automates key aspects of operations and enables it to efficiently match borrowers with investors and execute loan transactions. Leveraging the extensive experience of parent company CreditEase, Yirendai provides an effective solution to address largely underserved investor and individual borrower demand in China.
CreditEase is a large financial services company focusing on providing inclusive finance and wealth management products and services in China. Its borrowers and investors come from a variety of channels, including online sources, such as the Internet and mobile applications, as well as offline sources, such as referrals from CreditEase’s on-the-ground sales network. In 2014 and the nine months ended September 30, 2015, Yirendai facilitated over $260.7 million in loans through its mobile applications, respectively, representing roughly 25% of the total amount of loans facilitated through the marketplace in the respective periods.
In the filing, the company said:
Our online marketplace provides investors with attractive returns with investment thresholds as low as RMB100 (US$16.10). Investors have the option to individually select specific loans to invest in or to use our automated investing tool that identifies and selects loans on the basis of a targeted return. We also offer investors a risk reserve fund service with the aim of limiting losses to investors from borrower defaults. In addition, we provide investors with access to a liquid secondary market, giving them an opportunity to exit their investments.
Yirendai intends to use the net proceeds from this offering for general corporate purposes.