Q&K Issues $100 Million in Convertible Bonds
Q&K International Group Ltd. (Nasdaq: QK) announced Wednesday that it will issue a four-year convertible bond with a total principal amount of $100 million. Initial orders from investors are expected to be completed within two weeks.
The Shanghai-based long-term apartment rental platform said in today's announcement that the fund will be mainly used to acquire a well-known apartment brand in China.
Founded in 2012 and listed on Nasdaq on November 5, 2019, Q&K's apartments number rising from 900 in 2012 to 100,000 in 2019. The company provides ready-to-move-in rental spaces, targeting China's youth in urban areas. It leases apartments from owners and transforms them into standardized furnished rooms for rent, a model which the company called "dispersed lease-and-operate."
Covid-19 has deeply affected the long-term apartment rental market, and the rising vacancy rate is a problem for the industry.
"Although the epidemic has brought considerable challenges to the industry, opportunities have also been bred in the crisis," Q&K said.
The stock of Q&K up 3.48% in New York today, closed at $9.45.