UP Fintech Announces Pricing of Follow-on Public Offering of American Depositary Shares

Rhea-AI Summary

UP Fintech Holding (TIGR) has announced the pricing of a public offering of 15,000,000 American Depositary Shares (ADSs) at $6.25 per ADS, with each ADS representing 15 Class A ordinary shares. Underwriters have a 20-day option to purchase up to 2,250,000 additional ADSs. The offering, expected to close on October 24, 2024, will generate approximately $90.0 million in net proceeds. The company plans to use the funds for strengthening its capital base and business development initiatives. Deutsche Bank AG, China International Capital , and US Tiger Securities are acting as joint bookrunners.

Positive

• Expected to raise $90.0 million in net proceeds
• Funds will strengthen capital base
• Multiple prominent financial institutions acting as joint bookrunners

Negative

• Potential dilution of existing shareholders through issuance of 15 million new ADSs
• Additional dilution possible if underwriters exercise option for 2.25 million extra ADSs

Insights

Financial Analyst

This follow-on public offering represents a significant capital raise for UP Fintech, bringing in approximately $90.0 million through the sale of 15 million ADSs at $6.25 per share, with a potential additional $14.1 million if underwriters exercise their option for 2.25 million more ADSs. The pricing suggests moderate market confidence, though it reflects a discount to recent trading levels. The capital injection will bolster the company's financial position and fund business expansion initiatives.

The timing and size of this offering indicate UP Fintech's strategic move to capitalize on market conditions and strengthen its competitive position in the global online brokerage space. The involvement of major underwriters like Deutsche Bank and CICC adds credibility to the offering, though the dilutive effect on existing shareholders should be considered.

SINGAPORE, Oct. 23, 2024 (GLOBE NEWSWIRE) -- UP Fintech Holding Limited (Nasdaq: TIGR) (“UP Fintech” or the “Company”), a leading online brokerage firm focusing on global investors, today announced the pricing of a public offering of 15,000,000 American Depositary Shares (“ADSs”), each representing 15 Class A ordinary shares of the Company, at a public offering price of US$6.25 per ADS. The underwriters will have an option to purchase up to an aggregate of 2,250,000 additional ADSs from the Company at the public offering price, less underwriting discounts and commissions, exercisable within 20 days from the date of the prospectus supplement.

The ADS offering is expected to close on October 24, 2024, subject to customary closing conditions.

The Company expects to use the net proceeds of approximately US$90.0 million from the ADS offering for strengthening the Company’s capital base and furthering the Company’s business development initiatives.

Deutsche Bank AG, Hong Kong Branch, China International Capital Corporation Hong Kong Securities Limited and US Tiger Securities, Inc. are acting as the joint bookrunners for the proposed ADS offering.

The ADS offering has been made pursuant to an automatic shelf registration statement on Form F-3 filed with the United States Securities and Exchange Commission (the “SEC”) and is available on the SEC’s website at http://www.sec.gov. The ADS offering has been made only by means of a prospectus supplement and an accompanying prospectus included in the Form F-3. The Form F-3 and the prospectus supplement are available on the SEC’s website at http://www.sec.gov. The final prospectus supplement will be filed with the SEC and will be available on the SEC’s website at: http://www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus may be obtained by contacting Deutsche Bank AG, Hong Kong Branch, Level 60, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong; China International Capital Corporation Hong Kong Securities Limited 29/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong; or, US Tiger Securities, Inc., 437 Madison Avenue, 27th Floor, New York, NY 10022, United States of America.

This announcement shall not constitute an offer to sell, or a solicitation of an offer to buy, the securities described herein, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About UP Fintech Holding Limited

UP Fintech Holding Limited is a leading online brokerage firm focusing on global investors. The Company’s proprietary mobile and online trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world. The Company offers innovative products and services as well as a superior user experience to customers through its “mobile first” strategy, which enables it to better serve and retain current customers as well as attract new ones. The Company offers customers comprehensive brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, ESOP management, investor education, community discussion and customer support. The Company’s proprietary infrastructure and advanced technology are able to support trades across multiple currencies, multiple markets, multiple products, multiple execution venues and multiple clearinghouses.

For more information on the Company, please visit: https://ir.itigerup.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “might,” “aim,” “likely to,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements or expressions. Among other statements, the business outlook and quotations from management in this announcement, the Company’s strategic and operational plans and expectations regarding growth and expansion of its business lines, and the Company’s plans for future financing of its business contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including the earnings conference call. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to effectively implement its growth strategies; trends and competition in global financial markets; changes in the Company’s revenues and certain cost or expense accounting policies; and governmental policies and regulations affecting the Company’s industry and general economic conditions in China, Singapore and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC, including the Company’s annual report on Form 20-F filed with the SEC on April 22, 2024. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Further information regarding these and other risks is included in the Company’s filings with the SEC.

For investor and media inquiries please contact:

Investor Relations Contact
UP Fintech Holding Limited
Email: ir@itiger.com

FAQ

What is the price per ADS in UP Fintech's (TIGR) October 2024 public offering?

UP Fintech (TIGR) priced its public offering at $6.25 per ADS.

How many ADSs is UP Fintech (TIGR) offering in its October 2024 public offering?

UP Fintech is offering 15,000,000 ADSs, with underwriters having an option to purchase an additional 2,250,000 ADSs.

How much money does UP Fintech (TIGR) expect to raise from its October 2024 offering?

UP Fintech expects to raise approximately $90.0 million in net proceeds from the offering.

What will UP Fintech (TIGR) use the proceeds from its October 2024 offering for?

UP Fintech plans to use the proceeds for strengthening its capital base and furthering business development initiatives.