In October 2018, China based Pintec (NASDAQ:PT), a Fintech providing a portfolio of services, launched an initial public offering in the US. According to a release, the underwriters for the transaction were Goldman Sachs (Asia) LLC, Deutsche Bank Securities, Citigroup, and ICBC International.
Pintec describes itself as “a leading independent technology platform in China, which provides efficient and intelligent financial technology solutions to business and financial partners, enabling them to provide financial services to end-users efficiently and effectively”.
The company offers point-of-sale financing solutions, other lending solutions, as well as a Robo-advisory offering and more. At the time of the IPO, Pintec issued American Depository Shares (ADSs) at $11.88 share raising over $40 million at a valuation of more than $400 million.
Today, shares of Pintec trade at around $3 so it has been a disappointing and bumpy ride down for early investors.
This precipitous drop in prices per share has encouraged a battalion of law firms to launch “investigations” seeking investors that purchased shares in Pintec to become part of a possible lawsuit.
It did not help matters when Pintec filed its annual report last month with certain financial adjustments including a drop in net income.
Earlier this month, Pintec announced the resignation of an independent director. The person was soon replaced but it did raise some eyebrows.
Chinese companies seeking a listing in the US on a marketplace or an exchange has been a mixed bag for these Asian issuers. While trading on a US exchange may raise the profile of the company it can also add scrutiny to the firm – at times a scrutiny that may not be that welcome.
