HeZhong, Seeking $5 Million IPO in New York, Prices Shares

The Chinese lending platform hopes to offer up to 1.25 million shares at $4 apiece.

Author: Binwei Wang   

A peer-to-peer lending marketplace, HeZhong International Holding Ltd., has priced its shares Wednesday as it anticipates to complete an initial public offering of up to $5 million on the Nasdaq Capital Market. 

The company, based in Shenzhen, has updated its prospectus with the U.S. Securities and Exchange Commission today saying it hopes to sell 1.25 million shares at up to $4 per ordinary share.

ViewTrade Securities, listed as the underwriter on the deal, will have an option to acquire up to an additional $750,000 worth of shares, according to the report.

HeZhong operates in Guangdong Province and facilitates loans between Chinese borrowers and investors.

In the year ended June 30, 2018, the total number of borrowers in HeZhong was 632,000, of which 594,285 were borrowers for consumer purposes and 1,409 were borrowers of automobile loans.

The market size of the online lending marketplace in China was more than $408 billion, according to a December report from market research firm Wangdaizhijia. 

There are currently more than 10 online lending companies like HeZhong in China who are seeking for the overseas IPO opportunities to sidestep China's supervision. Except for the strictly compliant companies, the weak and non-compliant lending platforms should be retreated and shut down by the government, according to the recent regulatory requirements of Circular 175 of January 2019. 

The company seeks to trade under the symbol "HZ."