UP Fintech Holding Ltd. (TIGR) stock price inched up by a marginal 0.34% as of the market closing on June 7th, 2021, bringing the price per share up to USD$26.79 at the end of the trading day. Today, premarket trading saw the stock fall by 8.92%.
Public offering of ADSs
The company announced on June 7th, 2021 that it had finalized intentions to offer and sell 6.5 million American Deposits Shares (ADSs). The underwritten public offering will see each ADS represent 15 Class A ordinary shares of the company, subject to market and other conditions. Underwriters will also be granted a 30-day option to purchase up to an additional aggregate of 975,000 ADSs from TIGR.
Allocation of Generated Capital
The net proceeds generated from the proposed ADS offering are expected to be allocated towards the expansion of the company’s customer base, with the driving of customer engagement with TIGR services. The funds will also be invested in the expansion of the company’s products, services, and technologies to enhance its user experience and operating efficiency. Furthermore, the company will invest the raised capital to facilitate the expansion of its international footprint.
Because of the continued expansion of TIGR’s market presence and its portfolio of offerings, the total number of accounts reached significant milestones, as did the company’s total account balance. TIGR added more than 117,000 funded accounts, with the aggregate value of assets that were allocated to the company platform by clients of more than USD$21.4 billion. Q1 2021 also reported a massive surge in total trading volume, with reports pegging it at USD$123.8 billion, nearly three times the amount reported in the same time period of the prior fiscal year.
Promising Financial Reports
Total revenues were up to USD$81.3 million for the first quarter of the fiscal year 2021, up 255.5% from the numbers reported for the prior-year period. Total net revenues exhibited a 245.7% year-over-year increase, with Q1 2021 reporting USD$75.7 million. Net income was up to USD$21.1 million, up from the USD$0.5 million from the first quarter of the fiscal year 2021. The company reported having cash and cash equivalents, and term deposits amounting to USD$193.4 million as of March 31st, 2021. This is up from the USD$98.4 million reported as of December 31st, 2020.
Future Outlook for TIGR
Armed with a solid liquidity position and a stellar track record for the start of the fiscal year 2021, TIGR is poised to capitalize and usher in a prosperous rest of the year. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.