(Reuters) Chinese online lender Lexinfintech’s shares surged in their US market debut on Thursday, in a sign that investors were looking past Beijing’s recent crackdown on the booming micro-credit industry.
Shares of Lexinfintech Holdings rose as much as 53% on the Nasdaq, valuing the Shenzhen-based company at $4.51bn.
Its initial public offering was priced at $9 per American depository share, at the bottom of a $9 to $11 range, and raised $108m.
The company last week slashed the size of the IPO by two-thirds to a maximum of $151.8m following the clampdown on micro-lenders by China’s financial regulators.
Attempt to curb micro-lender growth
China is trying to curb the fast yet haphazard growth at the country’s online micro-lenders, unveiling tougher new rules in recent weeks including a ban on loans to borrowers who have no source of income.
The industry is booming amid rising Chinese incomes and a low credit card penetration rate.