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SHANGHAI - FinVolution Group (NYSE:FINV), a fintech platform operating in China, Indonesia and the Philippines, today announced the pricing of its convertible senior notes offering totaling $130 million due 2030. The company, which boasts a market capitalization of $2.4 billion and maintains a "GREAT" financial health score according to InvestingPro, is currently trading below its Fair Value, suggesting potential upside opportunity. For more undervalued stocks, visit our Most Undervalued Stocks list.
The notes will bear interest at 2.50% annually, payable semi-annually starting January 1, 2026, and will mature on July 1, 2030. The initial conversion price is approximately $12.36 per American Depositary Share (ADS), representing a 30% premium over the June 18 closing price of $9.51. With a strong current ratio of 6.34 and minimal debt, FinVolution demonstrates robust financial capacity to service its debt obligations.
The company has granted initial purchasers an option to buy up to an additional $20 million in notes within a 13-day period after issuance. The notes are being offered to qualified institutional buyers under Rule 144A of the Securities Act.
FinVolution plans to use the proceeds for international expansion, working capital, and funding a concurrent share repurchase of 6,377,740 ADSs at $9.51 per share. This repurchase is designed to facilitate initial hedging by note purchasers and will be executed through privately negotiated transactions.
Holders may convert their notes at any time before maturity, with FinVolution paying in cash, ADSs, or a combination at its discretion. Noteholders can require the company to repurchase all or part of their notes on July 3, 2028, or upon certain fundamental changes.
The offering is expected to close around June 24, subject to customary closing conditions. The notes and related securities have not been registered under the Securities Act and may not be offered or sold within the United States except to qualified institutional buyers.
According to the press release statement, FinVolution had 216.2 million cumulative registered users across its three markets as of March 31, 2025. The company’s strong market position is reflected in its impressive financial performance, with a 103.8% return over the past year and a P/E ratio of 6.2. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report, providing deep-dive analysis of FinVolution’s market position and growth prospects.
In other recent news, FinVolution Group reported strong first-quarter earnings that surpassed analyst expectations. The company posted adjusted earnings per share of RMB2.97 ($0.41), a notable improvement compared to no earnings in the same quarter last year. Revenue increased by 10% year-over-year, reaching RMB3.48 billion ($479.7 million). FinVolution also saw a 7.9% rise in total transaction volume to RMB52.1 billion, with its outstanding loan balance growing 13.5% to RMB74.1 billion. The international segment of the business showed robust momentum, with revenues climbing 19.5% to RMB710.5 million, which now makes up 20.4% of the total revenue. The company reiterated its full-year 2025 revenue guidance, projecting growth between 10% and 15%. Additionally, FinVolution’s net profit surged 38.7% year-over-year to RMB737.6 million in the first quarter. As of March 31, 2025, the company reported a strong liquidity position with cash and short-term investments totaling RMB8.5 billion.
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