QinHong International Group, which provides financing and factoring-related services for SMEs in China, filed for a US IPO on Thursday.
The Chengdu, China-based company plans to raise $15 million by offering 3.8 million shares at a price of $4. At the proposed deal size, QinHong International Group would command a market value of $50 million.
QinHong International Group provides small-to-medium enterprises (SMEs) and financial institutions with a variety of services in connection with the monetization of negotiable instruments, accounts receivable, and other rights to payment. The company's network of commercial banks, factoring companies, and other financial institutions provides clients with access to obtain cash flows. It's SME customers are primarily commodities trading firms, selling banker's acceptance bills (BA bills), a type of negotiable instrument commonly used in trades in China. The company also generates fees through referrals to a factoring company, and plans to use IPO proceeds to form or acquire its own factoring business in China.
QinHong International Group was founded in 2017 and booked $2 million in revenue for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol QHI. The Benchmark Company and Axiom Capital Management are the joint bookrunners on the deal.
