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May 7, 2021updated 10 May 2021 9:18am

Ant-backed fintech Snowball set for US IPO – report

By Elles Houweling

Chinese financial information platform Snowball Finance Co is reportedly planning a $300m initial public offering (IPO) on the US stock market. The Beijing-based fintech company, which is backed by Ant Group, could file to go public as early as this month.

The company, known in China as “Xueqiu”, is working with advisers on the proposed share sale, Bloomberg reports, citing persons with knowledge of the matter. As deliberations are ongoing, the timing and offering size of the IPO may be subject to change.

According to GlobalData market intelligence, Snowball Finance previously secured backing from Orchid Asia Group Management Ltd and Ant Financial Services Group. In each of the funding rounds, the fintech secured $120m. Other major backers include Sequoia Capital, Wuyuan Capital, iHubo, and Renren.

Founded in 2010 by Fang Sanwen and Li Nan, the company’s ambition is to “grow its customers’ wealth like snowballs.” According to its website, investors can use the platform to follow Chinese and US stock markets in real-time and trade shares directly through the mobile app.

Since founding Snowball has lived up to its name in terms of its own growth, which according to CEO and co-founder Li Nan is partially due to the “development of China’s capital market and more and more outstanding domestic companies moving towards IPOs.”

Ant Group, a spin-off from Chinese tech giant Alibaba, has faced issues with its own IPO. Last year, the company was due to go public with the largest flotation in history. However, plans fell through after Chinese regulators decided to block the listing at the last minute.