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

Rhea-AI Summary

UP Fintech Holding (Nasdaq: TIGR), a leading online brokerage firm for global investors, has announced a proposed follow-on public offering of 15,000,000 American Depositary Shares (ADSs). Each ADS represents 15 Class A ordinary shares of the Company. The underwriters have an option to purchase up to 2,250,000 additional ADSs within 20 days from the prospectus supplement date.

The Company plans to use the net proceeds to strengthen its capital base and further business development initiatives. Deutsche Bank AG, China International Capital Hong Kong Securities , and US Tiger Securities, Inc. will act as joint bookrunners for the offering.

The offering will be made under an automatic shelf registration statement on Form F-3 filed with the SEC. A preliminary prospectus supplement and accompanying prospectus have been filed, with the final prospectus supplement to be filed later.

Positive

• Potential to strengthen the company's capital base
• Opportunity for business development initiatives
• Involvement of reputable financial institutions as joint bookrunners

Negative

• Potential dilution of existing shareholders' equity
• Increased share supply may put downward pressure on stock price

Insights

Financial Analyst

UP Fintech's proposed follow-on public offering of 15 million ADSs, with an option for an additional 2.25 million, is a significant move to bolster its capital position. This offering could potentially raise hundreds of millions of dollars, depending on the pricing. The company's intent to use the proceeds for strengthening its capital base and business development initiatives suggests a strategic focus on growth and expansion.

The involvement of major underwriters like Deutsche Bank, China International Capital and US Tiger Securities lends credibility to the offering. However, investors should note that this will likely result in dilution for existing shareholders. The impact on the stock price in the short term may be negative due to this dilution effect.

The use of an automatic shelf registration on Form F-3 indicates that UP Fintech qualifies as a well-known seasoned issuer, which speaks to its market capitalization and reporting history. This allows for a more streamlined offering process. Overall, while this move may provide UP Fintech with significant capital for growth, investors should carefully consider the potential dilution and the company's ability to effectively utilize the new funds to generate returns.

Market Research Analyst

UP Fintech's decision to pursue a follow-on offering comes at a time when the online brokerage industry is experiencing intense competition and rapid technological advancements. The company's focus on global investors, particularly in Asia, positions it uniquely in the market. However, this offering suggests that UP Fintech needs additional capital to compete effectively and expand its market share.

The timing of this offering is crucial. With a market cap of $1.14 billion, the company is seeking to raise a significant amount relative to its current valuation. This could indicate ambitious growth plans or a need to shore up its financial position in a challenging market environment. Investors should look closely at UP Fintech's recent financial performance and growth metrics to assess whether this capital raise is from a position of strength or necessity.

The global expansion of retail trading platforms and the increasing interest in cross-border investments could provide tailwinds for UP Fintech's growth strategy. However, regulatory challenges in different jurisdictions and market volatility remain key risks. The success of this offering and the company's subsequent performance will largely depend on how effectively it can deploy the new capital to capture market opportunities and differentiate itself in a crowded field.

SINGAPORE, Oct. 22, 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 that it intends to offer and sell 15,000,000 American Depositary Shares (“ADSs”), each representing 15 Class A ordinary shares of the Company, subject to market and other conditions, in an underwritten public offering. The underwriters 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 Company expects to use the net proceeds from the proposed 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. will act as the joint bookrunners for the proposed ADS offering.

The proposed ADS offering will be 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. A preliminary prospectus supplement and an accompanying prospectus related to the proposed ADS offering have been filed with the SEC and 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

How many ADSs is UP Fintech (TIGR) offering in its follow-on public offering?

UP Fintech (TIGR) is offering 15,000,000 American Depositary Shares (ADSs) in its follow-on public offering, with an option for underwriters to purchase up to 2,250,000 additional ADSs.

What is the purpose of UP Fintech's (TIGR) ADS offering?

UP Fintech (TIGR) intends to use the net proceeds from the ADS offering to strengthen its capital base and further its business development initiatives.

Who are the joint bookrunners for UP Fintech's (TIGR) proposed ADS offering?

The joint bookrunners for UP Fintech's (TIGR) proposed ADS offering are Deutsche Bank AG, Hong Kong Branch, China International Capital Hong Kong Securities , and US Tiger Securities, Inc.

How many Class A ordinary shares does each ADS represent in UP Fintech's (TIGR) offering?

In UP Fintech's (TIGR) offering, each American Depositary Share (ADS) represents 15 Class A ordinary shares of the Company.