China's Qifu Tech stabilizes after $600 mln convertible bond sale

Qfin Holdings

26/03/2025 13:00

** U.S.-listed shares of Chinese credit-tech platform Qifu Technology QFIN.O flat in premarket trading after securing capital raise

** QFIN shares had fallen past four sessions

** Shanghai-based fintech late Tues announced pricing private offering of $600 mln 0.50% 5-yr convertible bonds (CBs)

** Initial conversion price of $59.71 represents 35% premium to last close of its American depositary shares (ADSs)

** Co plans to use net offering proceeds to repurchase ADSs and/or ordinary shares

** It says plans to repurchase approx $230 mln worth of ADSs from certain purchases of the CBs

** Co has ~$6.9 bln market cap, based on 155.3 mln shares outstanding, according to LSEG data

** On Mar 17, QFIN shares ended session up ~9% at $47.13 after co posted Q4 beat and hiked its semi-annual dividend

     ** Through Tues, shares up 15% YTD. They closed at $18.51 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))