Company: LexinFintech Holdings Ltd.
Symbol: LX
Description: They are a leading online consumer finance platform in China in terms of the outstanding principal balance of loans originated on our platform as of June 30, 2017, according to Oliver Wyman.
Shares: 12 million ADSs
Price Range: $9.00-$11.00
Trade Date: 12/21
Underwriter(s): Goldman Sachs (Asia), BofA Merrill Lynch, Deutsche Bank Securities, China Renaissance
Co-Manager: ICBC International
Terms Added: 12-13-17
Business: They strategically focus on serving the credit needs of educated young adults in China. They had approximately 3.0 million active customers in 2016 and 3.3 million active customers in the nine months ended September 30, 2017, representing a 103% and 34% increase from 2015 and the nine months ended September 30, 2016, respectively. As of September 30, 2017, they had over 6.5 million customers with an approved credit line and over 20 million registered users.
Their online consumer finance platform, Fenqile, offers customers personal installment loans, installment purchase loans and other loan products. They match customer loans with diversified funding sources, including individual investors on their Juzi Licai platform, institutional funding partners on their direct lending programs, investors of their asset-backed securities and others. They charge fees for their matching services.
KEY METRICS: 
Recent Regulations: China’s online consumer finance industry has historically been largely unregulated. Recently, PRC regulatory authorities, including the China Bank Regulatory Commission and the People’s Bank of China, have issued guidelines and policy directives relating to the online consumer finance industry. See “Regulation.” It is expected that the online consumer finance market may be subject to closer scrutiny from regulators with more detailed rules and regulations to be introduced.
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