Q&K International Group, which renovates and sub-leases apartments in Chinese cities, lowered the proposed deal size for its upcoming IPO on Friday.
The Shanghai, China-based company now plans to raise $49 million by offering 2.7 million shares at a price range of $17 to $19. The company had previously filed to offer 5.2 million shares at a range of $17 to $19. It also significantly reduced its insider buying. In the original filing, existing shareholders Crescent Capital, Newsion, and Youzhen had indicated an interest in purchasing $45 million (48% of the deal); now, only Youzhen has indicated interest in purchasing $5 million (10%). On the other hand, the company disclosed that certain outside investors have placed orders aggregating $30 million (62% of the deal), and that they will be locked up for 45 days.
Q&K International Group was founded in 2012 and booked $170 million in sales for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol QK. Morgan Stanley and CICC are the joint bookrunners on the deal. It is expected to price during the week of November 4, 2019.
