Chinese online lending platform Dianrong.com is looking to launch an IPO as soon as 2018 to raise at least US$500 million, The Wall Street Journal reported Dec. 4, citing "people familiar with the matter."
The platform could list its shares in Hong Kong following a slew of technology-related IPOs in the city, the report said. Dianrong offers loans and sells investment products to individuals and small businesses in China. However, the company has stopped offering microloans due to the unsustainable underwriting costs of such products, a Dianrong spokesman said.
The IPO could unlock potential profits for the company's shareholders given the demand for technology-related stocks in Hong Kong over the past year. The company's shareholders include GIC Pte. Ltd., Northern Light Venture Capital, Tiger Global Management LLC and the private equity arm of Standard Chartered Plc.
The company, however, is not in need of immediate cash and may push back its IPO if market conditions are not optimal.
A spokesman said that while the company continues to explore options in the capital markets, no final decision has been made yet.
The planned IPO comes amid tighter regulatory scrutiny in China against microlenders.
