Qudian rose 48 percent in IPO on US stock exchange

Qudian Inc. (NYSE:QD) shares rose 48 percent in its market debut on Wednesday on US stock exchange. The online microcredit startup headquartered in Beijing raised the US$11.67 billion valuation. The Qudian IPO was priced at US$24 per American depository share (ADS) and raised up to US$900 million by sales of 35.63 million shares.

Tinuku Qudian shares rose 48 percent in IPO on US stock exchange

Qudian is supported by Alibaba Group's Ant Financial in running a mobile platform that allows students and young workers borrow amounts as low as US$60 to buy clothing, concert tickets or smartphones. The company is targeting hundreds of millions of unbankable young people in China who need small credit access.

Qudian was founded by Shuang Liu and Min Luo in 2014 and has generated loan sales of US$5.6 billion in the first half of 2017 to 7 million active borrowers. Profits rose eight-fold to US$144 million in the last six months on June 30, where revenues increased fivefold to US$270 million.

Qudian claims to be a fintech innovator in applying artificial intelligence to financial applications. Loans between US$136 to US$184 will be approved through analysis within seconds. Companies use machine learning to assess creditworthiness.