Update on Yirendai IPO

By Ryan Weeks on Tuesday 17 November 2015

Alternative Lending

Further details have surfaced on Chinese peer-to-peer lender Yirendai’s impending IPO.

Yirendai is a peer-to-peer lending platform that was spun out of CreditEase in 2012. The lender offers consumer loans through what it describes as an “easy, convenient, secure and transparent” platform. Yirendai will reportedly look to raise up to $100 million through the IPO on the New York Stock Exchange, under the symbol YRD. Yirendai filed confidentially on 27th February this year. In April, Bloomberg reported that Yirendai intended to raise around $300m through a listing, valuing the platform at roughly $2 billion. Given the decline of the targeted fundraising total over the past 6 months, we wonder whether the valuation will also have been affected.

Morgan Stanley, Credit Suisse and China Renaissance are acting as joint bookrunners on the IPO. The latter of these, China Renaissance, posted an update on the impending listing yesterday, which stated that Yirendai has facilitated $1 billion in loans since inception. The update also revealed that Yirendai booked $106m in revenue for the 12 months ended 30th June 2015. That seems a preposterously large amount of revenue to have eked out of only $1bn in lending. Furthermore, the Renaissance Capital update stated that no pricing terms for the IPO have been disclosed.

Digging into Yirendai’s F-1 form, which may be discovered on the SEC website, we learn also that the platform boasted over 5 million registered users at the end of June. To our knowledge, the listing will constitute the first time that a Chinese online lender has listed in the US.   

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Companies in this Article:

CreditEase
Morgan Stanley