Uxin Shares Soar 7% on Private Placement of Convertible Notes
Shares in Uxin Ltd. (Nasdaq: UXIN) were trading up 7 percent Wednesday morning, at $2.64 apiece, after it announced a private placement of convertible notes worth $230 million to a group of investors.
The Beijing-based used car seller said in a statement Wednesday evening that it has arranged a convertible note purchase agreement with investors among which were certain affiliates of 58.com Inc. (NYSE: WUBA), Warburg Pincus, and TPG.
Uxin said the notes will accrue interest at an annual rate of 3.75 percent and will become due in five years. A note will be convertible to Class A ordinary shares of Uxin at a conversion price of $3.09 per American depositary share.
Investors in the deal may appoint a director to Uxin's board as part of the agreement. In addition, 58.com will cooperate with Uxin in traffic and inventory acquisition, used car inspections, big data analysis, and SaaS, according to the report.
The chairman, and chief executive officer of 58.com, Michael Yao, said he sees "enormous" potential in China's used car market.
"58 Used Car, a leading online used car platform for consumers and businesses that is part of our multi-content category classifieds platform, will benefit from Uxin's tremendous offline transaction-related expertise," Yao also stated.
Uxin's founder, chairman, and CEO, Kun Dai, said, "With this new funding, we will continue to enhance our ability to carry out cross-regional used car transactions, empowered by our industry-leading super supply chain."
Tencent Music's Revenue Growth Offset by Decline in Sublicensing
Bright Scholar's Shares Slip 2% on Losses, Market Uncertainty
Cellular Biomedicine Up 1% on Buyout Proposal
Huami Sees Stock Drop Despite Beefy Profits Amid Tariff Uncertainty
Alibaba Sets New Record for Sales on Singles Day
Ecmoho, a Health and Wellness Company, Raises $44 Million in New York IPO