Chinese online consumer finance platform LexinFintech Holdings Ltd. will delay the pricing of its IPO in the U.S. to conduct more due diligence amid China's clampdown on microlenders, Reuters reported Dec. 4, citing "a source with direct knowledge of the situation."
The report came as Chinese regulators issued new regulations to suspend license issuance to online microlenders and clean up existing business. Among other things, authorities will suspend approvals for microlenders that have obtained licenses to commence operations.
LexinFintech filed for its proposed US$500 million IPO in November to list American depositary shares on the NASDAQ Global Market under the symbol LX. The company was planning to make its market debut on Dec. 12, the source told Reuters.
The source did not specify how long the IPO was likely to be delayed.
Meanwhile, a Lexinfintech representative said the company "continues to work toward those objectives as described" in its IPO filing.
