[Abstract]360 Finance has priced its initial public offering at $16.50. The company will be listed on the New York Stock Exchange under the symbol "QFIN" on December 14.

Tencent Science and Technology News according to foreign media reports, according to the information released by the American IPO research company IPOBoutique.com, 360 Finance has set the initial public offering price at $16.50. The company will be listed on the New York Stock Exchange under the symbol "QFIN" on December 14.

The company had previously priced between $16.50 and $18.50, with an offering volume of 3.1 million American depositary receipts, meaning the company's offering price was at the bottom of the range. According to this calculation, without taking into account underwriting fees, commissions and over-allotment, 360Financial will raise $51.15 million through an initial public offering.

360 Finance will adopt a dual ownership structure after the initial public offering, which will be divided into Class A common shares and Class B common shares. The company will issue class A common shares in its initial public offering, and Zhou Hongyi, chairman of the board, will hold all class B common shares, accounting for 13.8 per cent of the total share capital and 76.3 per cent of voting rights. The Class An ordinary shares of 360 Finance are only different from the Class B common shares in terms of conversion rights and voting rights. Class An ordinary shares contain one voting right and cannot be converted into Class B common shares; Class B ordinary shares contain 20 voting rights and can be converted into Class A common shares.

Zhou Hongyi and its subsidiaries intend to buy American depositary receipts worth up to $20 million at the IPO price, according to the prospectus. Investment banks Citigroup Inc, Haitong International, Shangsheng Group (AMTD) and Light Source Capital (Lighthouse Capital) are co-lead underwriters of the financial IPO, while China Securities International, Tianfeng International, HeungKong Financial and North Beta Capital are co-associate underwriters. 360 Finance will use the funds raised for general corporate purposes.

In the prospectus, 360 Finance positioned itself as a "technology platform that connects borrowers with financial partners". 360 Finance excavates and recommends high-quality borrowers for financial partners, and helps them to provide reasonably priced, convenient and fast credit solutions for high-quality borrowers. According to the prospectus, 360 Finance has sound and diversified funding channels, mainly including traditional financial institutions such as state-owned banks and regional banks.

According to Oliver Wyman, among the Internet consumer financial platforms supported by Internet technology giants, the scale of 360financial business ranks among the top five in China in terms of loans in the second quarter of 2018, followed by Ant Financial Services Group, WeBank, JD.com Finance and Baidu, Inc. Finance.

According to the prospectus, the core product of 360 Finance is 360 IOUs. Under the matchmaking of 360Finance, users can get a credit line of up to 200000, and the loan is mainly used for consumer expenditure. As of Sept. 30, 2018, the average credit line available to users through IOUs is 9600 yuan.

As of September 30, 2018, the total amount of loans contributed by users who received loans through 360financial services totaled 6.4 million yuan, with a total loan balance of 34.7 billion yuan. Compared with the last quarter of 2016, the quarterly compound growth rates of the above three data are 97.0%, 115.6% and 95.2%, respectively.

financial status

Financial data for 2017

Net revenue in 2017 was 309.1 million yuan ($45 million), up from 60, 000 yuan a year earlier.

Total operating costs and expenses were 540.1 million yuan ($78.6 million) in 2017, up from 30.2 million yuan in the same period last year. Of this total, initiation and service fees were 136.1 million yuan ($19.8 million), up from 13.2 million yuan in the same period last year; sales and marketing expenses were 345.6 million yuan ($50.3 million), up from 1.6 million yuan in the same period last year; general and administrative expenses were 46 million yuan ($6.7 million), up from 15.4 million yuan in the same period last year. The loan reserve receivable is 12.4 million yuan ($1.8 million), compared with zero in the same period last year.

The operating loss in 2017 was 231 million yuan ($33.6 million), compared with an operating loss of 30.1 million yuan a year earlier.

The net loss in 2017 was 166.4 million yuan ($24.2 million), compared with a net loss of 21.8 million yuan a year earlier.

Financial data for the first three quarters of 2018:

Net revenue in the first three quarters of 2018 was 1.3856 billion yuan ($2.017), up from 74.4 million yuan a year earlier.

Total operating costs and expenses in the first three quarters of 2018 were 1.8445 billion yuan ($268.6 million), up from 311.8 million yuan in the same period last year. Of this total, initiation and service fees were 503.5 million yuan ($73.3 million), up from 76.8 million yuan in the same period last year; sales and marketing expenses were 844.7 million yuan ($123 million), up from 196.5 million yuan in the same period last year; general and administrative expenses were 460.1 million yuan ($67 million), up from 35.4 million yuan in the same period last year. The loan reserve receivable is 35.7 million yuan ($5.2 million), compared with 3.1 million yuan in the same period last year.

The operating loss in the first three quarters of 2018 was 459 million yuan ($66.8 million), compared with an operating loss of 237.5 million yuan a year earlier.

The net loss in the first three quarters of 2018 was 3.5671 billion yuan ($519.4 million), compared with a net loss of 171.8 million yuan a year earlier. (compiled / Mingxuan)