Chinese online lender climbs in US debut

Chinese online lender Lexinfintech surged in its US debut on Thursday, after downsizing its US initial public offering and pricing shares at the bottom of a marketed range.

Shares of Lexinfintech Holdings Ltd rose as much as 53 percent on the Nasdaq, valuing the Shenzhen-based company at $4.51 billion.

Its initial public offering was priced at $9 per American depositary share, at the bottom of a $9 to $11 range, and raised $108 million.

The company last week slashed the size of the IPO by two-thirds to a maximum of $151.8 million following a clampdown on micro-lenders by China’s financial regulators.

China is trying to curb haphazard growth at the country’s online micro-lenders, unveiling tougher new rules in recent weeks including a ban on loans to borrowers who have no source of income.

The industry is booming amid rising Chinese incomes and a low credit card penetration rate.

Existing Lexinfintech shareholders including K2 Partners and Chinese e-commerce firm JD have expressed interest to buy $28 million of its shares at the IPO price, according to a filing with US regulators.

REUTERS