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Chinese factoring firm QinHong International widens range to $4.00 to $4.50 ahead of $16 million US IPO

March 15, 2023

QinHong International Group, which provides financing and factoring-related services for SMEs in China, revised the terms for its upcoming IPO on Wednesday.

The Chengdu, China-based company now plans to raise $16 million by offering 3.8 million shares at a price range of $4.00 to $4.50. The company had previously filed to offer the same number of shares at $4.00. At the midpoint of the revised range, QinHong International Group will raise 6% more in proceeds than previously anticipated and command a market value of $41 million.

Because the company is expected to have a post-IPO market cap below $50 million, QinHong International Group will be excluded from Renaissance Capital's 2023 IPO stats.

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 and non-financial institutions provides clients with access to obtain cash flows. Its SME customers are primarily commodities trading firms, transferring 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.

QinHong International Group was founded in 2017 and booked $1 million in revenue for the 12 months ended June 30, 2022. 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.