Yixin Capital eyes IPO in Hong Kong later this year

12 Oct 2017

Yixin Capital Ltd. (易鑫集, otherwise known as Daikuan.com, Yixin Chedai or Yixin Group), China’s leading provider of used- and new-auto financing and transactions, is rumored to be eyeing an IPO in the near future.

The company is reportedly (for instance, here) targeting a listing on the Hong Kong Stock Exchange before the end of this year, with the company supposedly already having raised $300 million U.S. in preliminary share subscriptions. Yixin Capital is expected to be valued at around $5 billion U.S. when it does list.

Hong Kong has been making moves to lure more listings from tech companies on Mainland China, for instance, by eliminating the role that its securities watchdog plays in approving new listings.

Initial public offerings (IPOs) in Hong Kong fell 19.5 percent in H1 of 2017 to a combined $5.8 billion U.S., compared with the same period last year, when the city was top of the league table worldwide for new listings, according to the South China Morning Post.

Earlier this month, ZhongAn Online Property and Casualty Insurance, founded by Alibaba CEO Jack Ma, committed to the Hong Kong Exchange. ZhongAn saw a 52-percent rise over its IPO offer price, when its shares debuted on September 28 – a performance which is expected to attract more Mainland tech companies.

Yixin Capital was founded by Bitauto (NYSE: BITA), with early backing from Tencent, Baidu and JD.com in the form of 6.5 billion RMB ($1 billion U.S.). Since then, Yixin Capital has been one of the leading issuers of asset-backed securities in China. In the last 18 months alone, it raised 6.5 billion RMB in this way. 

Yixin Capital has been a considerable boon for Bitauto, along with joint-backers Tencent, Baidu and JD.com. Bitauto recently announced its entire transactions business would be shifted over to Yixin Capital, and its burgeoning finance, financial leasing and transaction-based platform, Taoche.com (淘车). 

One of China’s leading fintech analytics agencies, Ifenxi.com (爱分析), estimates the total auto credit business of Yixin Capital to be worth about 30 billion RMB – making it the largest in China.

Bitauto recently announced that all of its vehicle transaction business will be moved over to its subsidiary Yixin Capital, with Taoche.com as the principal transaction outlet. Bitauto’s revenue from transactions was up 161 percent year-on-year in Q1, and 181 percent year-on-year in Q2 of FY2017.

+ For a very comprehensive overview of Bitauto and its subsidiary Yixin Capital, go here. (But, don’t forget to come back – editor.)

Share

Tom Marling

Tom is a PhD candidate in Chinese History at Hong Kong Baptist University, and former PR consultant in Mainland China. He joined the AIM Group in 2016 as a writer/analyst.