Lei Di.com Lei Jianping reported on March 20
Tiger Securities, a company owned by Xiaomi, was listed on Nasdaq in the United States today, with an issue price of US$8, higher than the issuance range of US$5 to US$7 per share.
The lead underwriters of Tiger Brokers' IPO are Deutsche Bank and Citigroup. The company plans to be listed on Nasdaq under the trading code "TIGR". During the global road show, its IPO subscription has exceeded its fundraising by more than ten times.
With the long-term support of international long-term funds, Tiger Brokers can increase the issuance limit by 20% to $8.4/ADS. Ultimately, the company set the offering price at $8.
Calculated based on the issuance of 13 million American Depositary Shares (ADS), plus the simultaneous private placement of US$7 million ADS to existing shareholder Interactive Brokers, the total amount raised by Tiger Brokers rose to US$111 million.
According to the revised prospectus previously submitted by Tiger Brokers to the SEC, including the over-allotment of 1.95 million shares that may be executed by the underwriters, the maximum fundraising amount will reach US$127 million.
Wu Tianhua, founder of Tiger Brokers, delivered a speech
Wu Tianhua, founder of Tiger Brokers, said in his speech at the listing that today is an important step in progress. We are proud of these achievements, but the mission never stops.
“The listing marks a new beginning, stay focused and never forget your original intention!”
Wu Tianhua said that this is the best era, and technology allows us to realize our dreams. On this epic journey, I would like to thank my colleagues who work day and night to support Tiger Brokers’ global operations.
When talking about the listing of Tiger Securities, Wu Haiyan, a partner at Huachuang Capital, told Leidi.com that the wealth level and investment capabilities of Chinese people around the world are increasing rapidly. Huachuang is very fortunate and happy to invest in Tiger Securities founded by Wu Tianhua at the end of 2016 and witness the rapid growth of Tiger Securities.
"Tianhua is my junior student in the Computer Science Department of Tsinghua University. I am even more proud to see that today Tianhua can lead the company he founded to be listed on Nasdaq and usher in an important milestone in the company's growth."
Wu Haiyan said that Wu Tianhua is a person with strong technical ability. He was an amateur investment expert before starting a business. After starting a business, he was also able to learn and grow quickly in organizational strategy, team management, and capital markets.
"Congratulations to Tianhua and all colleagues at Tiger Brokers for finding a "wet and long snow path" and taking the lead. I am willing to continue to work hard and be a friend of time."
Revenue last year was $33.56 million
Lei Jianping, founder of Lei Di Touch Network, takes a photo with Wu Tianhua
Founded in 2014, Tiger Brokers is positioned as a Chinese Internet brokerage and aims to improve everyone's investment efficiency through financial technology. It has obtained brokerage licenses or permits from the United States, New Zealand, and Australia.
The prospectus shows that Tiger Brokers’ total revenue in 2018 was US$33.56 million, a year-on-year increase of 98%. The revenue from 2016 to 2017 was US$5.476 million and US$16.949 million respectively.
In 2018, the company's annual net loss based on non-GAAP was US$10.089 million.
Tiger Brokers' income mainly comes from transaction commissions, financing service fees, investment income, interest and other income. In 2018, transaction commission income was US$26.043 million, accounting for approximately 77.6%, and financing service fee income was US$6.442 million, accounting for approximately 19.2%.
Tiger Brokers’ revenue in the fourth quarter of 2018 was US$9.51 million, an increase of 56% from the same period last year.
Among them, Tiger Brokers’ income from trading commissions accounted for US$7.08 million, and income from financing service fees amounted to US$1.718 million.
Tiger Brokers' net loss in the fourth quarter of 2018 was US$2.117 million, a decrease of 38% from the loss of US$3.45 million in the previous quarter, and a decrease of 10% from the loss of US$2.34 million in the same period last year.
As of December 31, 2018, Tiger Brokers had 1.58 million registered users, 502,000 account opening customers, and 82,000 deposit customers.
In the same period in 2017 and 2016, these three data were 713,000, 205,000, 42,000 and 368,000, 79,000 and 14,000 respectively.
As of December 31, 2018, 71.5% of Tiger Brokers’ individual customers were under the age of 35, and more than 86.6% had an annual income exceeding US$40,000.
Xiaomi and Interactive Brokers are important shareholders
Wu Tianhua, the founder of Tiger Brokers, graduated from Tsinghua University with a bachelor's degree in computer science. He worked at NetEase for eight years and was very good at stock trading in the early days.
Li Jianwei, Zhao Xinghua and Wu Tianhua took a group photo
Li Jianwei, an investor in Tiger Securities and two managing partners of Zhencheng Investment, said in an interview with Leidi.com at the listing site that the process of investing in Tiger Securities is quite story-telling.
At first, I and Wu Tianhua, the founder of Tiger Brokers, were both in a stock community, and I was a fan of Wu Tianhua. "In the early days, Tianhua opened a paid training course on options. I was one of the students. I know that Tianhua is very good at stock trading and has strong Internet technology."
This kind of training allowed everyone to establish an understanding of Wu Tianhua's trading and technical capabilities. When Wu Tianhua decided to start a business as an Internet brokerage, Li Jianwei felt that it was very reliable, because Wu Tianhua loved this thing very much and had sufficient accumulation in the field.
"When Tianhua came out to do Tiger Securities, I recommended it to Mr. Xu (Note: Xu Xiaoping, a partner of Zhen Fund). At that time, Tiger's products had not yet been released and the team had just been formed."
However, at that time, Li Jianwei believed that Tiger Brokers had the opportunity to become China's Interactive Brokers (note: an Internet brokerage with a market value of more than 20 billion US dollars is also a shareholder of Tiger Brokers), and Wu Tianhua was a rare talent who best understood Internet technology and securities trading in the securities trading circle. Xu Xiaoping liked this positioning very much, and decided on the spot to make the decision, and Zhen Fund became an early shareholder of Tiger Brokers.
Tiger Brokers also received multiple rounds of financing before going public:
In September 2015, Tiger Brokers announced that it had received a 100 million yuan Series A investment from Xiaomi Technology;
In March 2017, Tiger Brokers announced the completion of a 100 million yuan B+ round of financing, led by Hua Chuang Capital and followed by Zhen Fund;
In July 2018, Tiger Brokers announced the completion of Series C financing, with a post-investment valuation of US$1.06 billion. Investors include PAC (Prospect Avenue Capital), Orient Hontai Capital, Oceanpine Capital, etc.
Rogers at the listing site of Tiger Securities
The characteristic of Tiger Securities is that there are many investors holding small shares. For example, Meituan-Dianping CEO Wang Xing, modern Wall Street figure Rogers, and Huagai Capital are also shareholders of Tiger Securities.
Rogers also visited the office of Tiger Securities. He once said that the company's focus on the US stock market and Fintech applications was one of the reasons why he invested in Tiger Securities.
"In terms of Fintech, I think China is not inferior to the United States at all, and is even more advanced in the field of mobile payment."
Rogers said that technology changes everything in the financial industry, and Tiger Brokers will continue to change the financial industry. Especially in Asia, the Chinese middle class is growing rapidly, and these people are eager for better asset allocation channels.
Before the IPO, Wu Tianhua held 18.9% of the shares through sky fintech holding limited and had 70% of the voting rights;
Xiaomi holds a 14.1% stake in Tiger Brokers through People Better Limited and has 5.2% voting rights;
Group photo of Tang Binsen, Li Li, Xie Wei and Wu Tianhua
Tang Binsen holds 12.4% of the shares through tigerex holding limited and has 4.6% of the voting rights;
IB global invertments LLC, the largest Internet brokerage in the United States, holds 7.7% of the shares and 2.9% of the voting rights;
Jager Fintech holding limited holds 7% of the equity and 2.6% of the voting rights.
Interactive Brokers is not only a major shareholder and partner of Tiger Brokers, but also provides Tiger Brokers with support in industry knowledge, legal and compliance matters, and risk management.
The following is Wu Tianhua’s breakfast speech:
Dear Nasdaq colleagues, ladies and gentlemen, good morning!
Ladies, Gentlemen & our dear friends at Nasdaq, Good morning!
It's an honor to be here with you all today. Ten years ago, I had the entrepreneurial dream of investing in US stock companies listed on NASDAQ.
Today, by focusing on technological innovation, Tiger Brokers has become a gateway for Chinese investors to invest in the world's best companies. At the same time, we are very proud that Nasdaq has become one of the most important partners in our journey.
It's my great honor to be here. Ten years ago, investing in Nasdaq listed companies inspired me to found Tiger Brokers. Today, through our focus on innovation, Tiger Brokers has become a gateway for global Chinese to invest in the best companies all over the world, and I am very proud to have Nasdaq as one of our most important partners on this journey.
Thanks to the support of all users and friends, Tiger Brokers has continued to create new industry records: in less than three years, the cumulative transaction size has exceeded one trillion yuan, which is the fastest known speed in the industry; in terms of US stock trading volume, we are the largest Internet brokerage focusing on serving Chinese people around the world. In November last year, our first ETF product TTTN was also launched on Nasdaq.
Thanks to all my users and friends, Tiger Brokers has kept setting new records. We have achieved 1 trillion RMB trading volume in less than 3 years, the fastest ever in this industry. We are now the biggest online broker for Chinese investors trading US securities. We also launched our first ETF, ticker TTTN, on Nasdaq last November.
For us, today is an important step forward. We are proud of these achievements, but the mission never stops. Listing marks a new beginning, stay focused and never forget your original intention!
Today is an important milestone for us. We are proud of what we have achieved, but we will never rest. Listing marks a new beginning, we will stay focused and remain true to our founding aspirations!
Thank you all! .
Thank you all for joining me for this special moment today!
The following is Wu Tianhua’s speech when ringing the bell:
Good morning everyone, I am Wu Tianhua, the founder of Tiger Securities. It's a great honor to be here and thank you all for coming.
Good morning everyone, my name is Tianhua WU, founder of Tiger Brokers. It's my great honor to be here today. Thank you all for coming.
Almost ten years ago, I was very interested in investing in US stocks and US stock options and was an active trader. At that time, although there were many brokerage products on the market, none were tailor-made for Chinese people, and the experience was very poor. From that moment on, I had a dream.
That is, one day I will be able to create a new generation of securities firms, help Chinese people invest in the best companies in the world more conveniently through better technology, and share the dividends of technological development.
About 10 years ago, I became an active trader in US stocks and options. Although there are many US brokers, none of them are tailored to Chinese users. Since then I had a dream, I wanted to build a new generation online broker through tech innovation that would help Chinese people invest in the best companies around the world.
With this dream in mind, we launched our self-developed trading software Tiger Trade four years ago. Thanks to the support of all users, we have achieved rapid development.
Tiger Brokers' cumulative transaction size exceeded one trillion yuan in three years, which is the fastest speed known in the industry. Judging from the trading volume of U.S. stocks, we are the largest Internet brokerage focusing on serving Chinese people around the world.
With this dream, we launched our own trading platform called Tiger Trade 4 years ago. Thanks to our users, we have achieved great growth. We reached 1 Trillion RMB total trading volume in less than 3 years, the fastest in the industry. We are now the biggest online broker for Chinese trading US Securities.
This is the best of times, technology allows us to realize our dreams. On this epic journey, I want to thank my colleagues who are working around the clock to support our global operations.
Thank you to all users and shareholders for their trust. Today marks a new beginning. We will have a longer road and more arduous struggles in the future. Let us stick to our ideals and live up to our mission.
Now is the best era; technology enables us to accomplish dreams. Thanks to all my friends and colleagues who have been part of this epic journey and to all my employees who are working around the clock to support our global operation.
Thanks for the trust from our users and our shareholders. Today only marks the new beginning, there is a long journey to go and more uphill battles to fight. Let's stick to our dreams and passions and deliver the best result to our users and shareholders.
Thanks again!
Thank you.
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