Hywin Holdings, which provides wealth management services in China, lowered the proposed deal size for its upcoming IPO on Wednesday.
The Shanghai, China-based company now plans to raise $42 million by offering 3.8 million ADSs at a price range of $10 to $12. The company had previously filed to offer 4.2 million shares at the same range. At the midpoint, Hywin Holdings will raise -10% less in proceeds than previously anticipated.
Hywin states that it is the third largest third-party wealth management service provider in China, with a 7.5% market share by 2019 transaction value. The company provides wealth management services, insurance brokerage services, and asset management services to its clients, and its largest business to date has been in wealth management.
Hywin Holdings was founded in 2006 and booked $198 million in revenue for the 12 months ended June 30, 2020 (based on exchange rate between RMB and USD as of 3/17/21). It plans to list on the Nasdaq under the symbol HYW. Network 1 Financial Securities, Alexander Capital and Valuable Capital are the joint bookrunners on the deal.
