China-focused online brokerage Up Fintech Holding files for US IPO

NEW YORK - Up Fintech Holding, an online brokerage focusing on global Chinese investors, filed on Friday for an initial public offering (IPO) on the US stock market.

The company plans to list on the NASDAQ under the symbol "TIGR," with an expectation to raise up to $150 million in the IPO, according to its prospectus filed with the US Securities and Exchange Commission.

Citi and Deutsche Bank are the joint bookrunners on the deal. No pricing terms were disclosed.

Online brokers utilize APPs and websites to provide integrated online securities services, including customer acquisition, account opening, securities trading and other value-added services.

A report from the iResearch, an independent market research firm, said that with the increasing need to trade efficiently, the customer base trading through online brokers will grow at a faster pace than that through traditional brokers.

Up Fintech Holding, the China-based company, was founded in 2014. It launched its trading platform in August 2015, which enables investors to trade in equities and other financial instruments on multiple exchanges around the world.

The company has achieved cumulative trading volume of one trillion yuan on its platform within three years since the launch of the Tiger Trade APP, said its prospectus.

Up Fintech Holding is the largest online broker focusing on global Chinese investors in terms of US securities trading volume in 2017, with a market share of approximately 58.4 percent, said the filing, citing the iResearch report.

The company generates revenues primarily by charging its customers commission fees for trading of securities as well as earning interest income or financing service fees arising from trading activities.

It pocketed $33.6 million in total revenue in 2018, as compared with $16.9 million in 2017.