Chinese online brokerage Futu slumps on $1.2 bln share offering

Haitong International Securities

21/04/2021 12:16

** Shares of Hong Kong-based Futu Holdings  FUTU.O  down
1.4% at $134.40 premarket as online brokerage prices follow-on
    ** FUTU among the most actively traded before the bell with
volume of >500k shares
    ** Tencent-backed  0700.HK  firm sells 9.5 mln ADSs at $130,
raises $1.24 bln  urn:newsml:reuters.com:*:nGNX5LjM44
    ** FUTU on Tues plunged 23.4%, its biggest one-day pct drop
on record, to close at $136.24 as co marketed deal size
representing ~7% of shares outstanding
    ** Co plans to use net offering proceeds to support margin
financing, international expansion, new license applications,
potential investment and acquisition opportunities, among others
    ** BofA and Haitong International jt bookrunners
    ** Even with Tues plunge, FUTU has tripled in 2021
    ** Online brokerages have benefited from retail trading boom
amid the pandemic, while some investors view Futu as China's
version of popular Robinhood trading app  urn:newsml:reuters.com:*:nL1N2LR1UH

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))