SINGAPORE - UP Fintech Holding Limited (NASDAQ:TIGR), an online brokerage firm 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 Class A ordinary shares. The underwriters have a 20-day option to buy an additional 2.25 million ADSs at the offering price, minus underwriting discounts and commissions.
The offering is expected to close on October 24, 2024, subject to standard closing conditions. UP Fintech anticipates raising approximately $90 million in net proceeds, which the company plans to use to strengthen its capital base and support business development initiatives.
Deutsche Bank AG (NYSE:DB), China International Capital Corporation Hong Kong Securities Limited, and US Tiger Securities, Inc. are serving as the joint bookrunners for the offering. The offering is made through an automatic shelf 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 equities and other financial instruments across global exchanges. The firm emphasizes a "mobile first" strategy, catering to user experience and offering services like margin financing, IPO subscriptions, and investor education.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities. Such offers, solicitations, or sales will not be made in any state or jurisdiction where such activity would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on a press release statement 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 regulatory environment. UP Fintech's filings with the SEC provide further details on these risks.
In other recent news, UP Fintech Holding Ltd. has been the subject of several significant developments. Citi downgraded UP Fintech's stock from Buy to Sell and adjusted the price target to $5.50. This move followed UP Fintech's announcement of a proposed public offering of 15 million American Depositary Shares (ADSs), which could potentially increase the company's equity base by 22% to 25% and result in a dilution of approximately 10% for the company's earnings per ADS for the fiscal year 2025 estimates.
Simultaneously, UP Fintech reported a record-breaking second quarter of 2024, with total revenue reaching an all-time high of $87.4 million. The firm added 48.9 thousand new paying customers during this period, showing strong growth. However, the company's second-quarter non-GAAP net profit showed a significant decline due to a one-time provision of $13.2 million for a legacy stock pledge business in Hong Kong.
These recent developments have led to Citi revising its price target for UP Fintech shares from the previous $6.49 to $5.00, maintaining a Buy rating on the stock. The firm anticipates further strength in trading volumes and revenue momentum in the third quarter. Despite facing challenges due to loss provisions and market uncertainties, UP Fintech remains optimistic about its ability to navigate potential challenges and continue its growth momentum.
InvestingPro Insights
As UP Fintech Holding Limited (NASDAQ:TIGR) moves forward with its public offering, recent data from InvestingPro sheds light on the company's financial position and market performance. The firm's market capitalization stands at $1.01 billion, reflecting its significant presence in the online brokerage sector.
UP Fintech has demonstrated strong revenue growth, with a 32.76% increase in quarterly revenue as of Q2 2024. This growth aligns with the company's plans to use the offering proceeds for business development, potentially fueling further expansion. The firm's gross profit margin of 82.74% in the last twelve months ending Q2 2024 indicates a robust core business model, which could be attractive to investors considering the new share offering.
InvestingPro Tips highlight that UP Fintech has been profitable over the last twelve months, with analysts predicting continued profitability this year. This positive outlook may support investor confidence in the company's $6.25 per ADS offering price. However, it's worth noting that the stock is trading at a high earnings multiple, with a P/E ratio of 38.34, suggesting investors are pricing in expectations of strong future growth.
The stock's recent performance has been particularly noteworthy, with InvestingPro data showing a 90.83% price return over the past six months. This strong momentum could have influenced the timing and pricing of the public offering. However, investors should be aware that UP Fintech's stock generally trades with high price volatility, as indicated by another InvestingPro Tip.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for UP Fintech, providing a more comprehensive view of the company's prospects and challenges.
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