Specifically, its 22.5 million ADS priced at $8.00, below the $8.50-$10.50 expected price range. Each two ADSs represents five Class A ordinary shares. The lead underwriters on this deal were Goldman Sachs and JP Morgan. Shares are set to open for trading later this morning on the NYSE.
JT provides an online platform for Chinese consumers to find financial products (consumer and other loans, credit cards and wealth management products) . It provides users with personalized search results and recommendations that are tailored to each user's particular financial needs and credit profile.
China's retail financial services market is highly fragmented, with a variety of national and regional financial institutions and emerging technology-enabled financial service providers. Jianpu’s open platform, which it operates under the "Rong360" brand, has reached over 67 million registered users. In the first nine months of 2017, over 2,500 financial service providers nationwide offered more than 170,000 financial products on its platform, including consumer and other loans, credit cards and wealth management products.
JT says its independent open platform allows it to serve the needs of users and financial service providers impartially. It also helps financial service providers find customers using tailored data and risk management services. As an open platform, JT has an extensive access to data from users, financial service providers and a wide variety of third-party data partners. The company is able to analyze a massive volume of data and offer valuable services to both users and financial service providers. This drives product recommendations and credit analysis for users and supports credit underwriting, fraud detection and fraud prevention for financial service providers.
JT is not yet profitable but is growing revenue at a nice clip. In 2016, revenue grew 112% to US$52.57 million. In 1H16, revenue grew 170% YoY to US$58.03 million. JT also reported that 3Q17 revenue increased by 82.7% sequentially and by 384% YoY to US$70.3 million.
The number of loan applications on its platform was approximately 28.2 million in Q3, up from 19.1 million in Q2 and 10.0 million in Q1, so it’s ramping quickly. Its average fee per loan application decreased from US$2.04 in 3Q16 to US$1.57 in 2Q17, but increased to US$1.97 in 3Q17.
Credit card volume was approximately 1.1 million in 3Q17, compared to 0.6 million in 2Q17 and 0.3 million in 1Q17.