Shanghai-based P2P (peer to peer) lending firm Ppdai.com, backed by Legend Capital and other venture investors, is planning an initial public offering in the U.S. as early as the second half of next year.
Formally named Shanghai Paipaidai Financial Information Service Co., the company is currently in initial discussions with bankers about the offering, which could value it at roughly US$2 billion, according to media reports.
Ppdai.com joins a number of Chinese P2P lenders seeking an IPO, which would allow their investors to exit. Ping An Insurance Company of China, Ltd. revealed in its semi-annual report that its Internet finance arm known as Lufax had recorded a profit for the first time during the first half.
Ping An Insurance is planning to spin out the unit for an independent listing potentially in Hong Kong this year or next to raise roughly US$5 billion, according to media reports citing insiders.
Another Shanghai-based P2P (peer to peer) lending platform DianRong, backed by Tiger Global Management LLC and others, is planning a U.S. listing as early as 2018.
Founded in 2007, Ppdai.com received US$25 million series A funding from Sequoia Capital in September 2012. In April 2014, it completed an undisclosed series B round of financing led by Lightspeed China Partners, with participation from Noah Private Wealth Management and Sequoia Capital.
In March 2016, Ppdai completed series C round of financing worth nearly US$100 million led by Legend Capital and SIG Asia Investment, joined by its existing investors.
The company claims to have over 12 million registered users at the end of 2015, according to its website. No information on its loan volume or fees were disclosed.
In December 2015, Beijing-based Yirendai Ltd. was the first Chinese P2P lender to list in New York. Its stock has more than tripled in value after a roller coaster ride, driven by explosive growth in total loan value and fee income that some analysts have questioned as unsustainable.