China's Futu Holdings sets terms for IPO of $120mln on Nasdaq

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Futu Holdings, a Hong Kong-based online brokerage, announced Tuesday terms for its initial public offering (IPO) on the U.S. stock market.

The fast-growing online firm plans to raise 120 million U.S. dollars by offering 10.9 million American depositary shares (ADSs) at a price range of 10 to 12 U.S. dollars. It's expected to price during the week of March 4.

An ADS is a U.S. dollar-denominated equity share of a foreign-based company for purchase on a U.S. stock exchange.

The company will list on the Nasdaq under the symbol FHL. Goldman Sachs (Asia), UBS Investment Bank and Credit Suisse are the joint book runners on the deal.

China's Internet giant Tencent intends to purchase ADSs worth of 30 million U.S. dollars in the offering, or 25 percent of the deal, the company said.

At the midpoint of the proposed range, Futu would command a fully diluted market value of 1.3 billion U.S. dollars, according to an announcement on the official website of Nasdaq.

Founded in 2011, the company provides a set of investing services, including trade execution, margin financing, market data and social networking through its digital platform for three major markets – Hong Kong, the Chinese mainland and the United States.

Futu filed for an IPO with the U.S. Securities and Exchange Commission on December 28, 2018. For the 12 months ended December 31, 2018, the company booked 103 million U.S. dollars in sales.

Source(s): Xinhua News Agency