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SHANGHAI - Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660), a prominent AI-empowered Credit-Tech platform in China with a market capitalization of $6.75 billion, announced today the successful completion of its convertible senior notes offering. According to InvestingPro data, the company currently trades near its 52-week high of $48.81, reflecting strong investor confidence in its business model. The offering, which amassed an aggregate principal amount of $690 million due 2030, includes the option fully exercised by initial purchasers to acquire an additional $90 million in notes.
The company stated that the net proceeds from the offering will be directed towards repurchasing its American depositary shares (ADSs) and/or class A ordinary shares. These repurchases are happening concurrently with the pricing of the notes offering and may continue post-pricing under the March 2025 Share Repurchase Plan, recently authorized by the company’s board. InvestingPro analysis shows management has been aggressively buying back shares, while maintaining strong financial health with a current ratio of 2.45 and minimal debt-to-equity of just 0.07. This plan is in addition to an existing share repurchase plan announced in November 2024.
Qifu Technology anticipates that the offering will be immediately accretive to its 2025 earnings per ADS upon closing. This expectation is based on the repurchase of approximately $230 million worth of ADSs from certain note purchasers in off-market transactions and the cash-par conversion settlement mechanism of the notes.
The newly issued notes will bear interest at a rate of 0.50% per annum, payable semiannually, and will mature on April 1, 2030, unless repurchased, redeemed, or converted earlier as per their terms. The initial conversion rate is set at 16.7475 ADSs per $1,000 principal amount, equivalent to a conversion price of around $59.71 per ADS.
The notes, the ADSs, and the class A ordinary shares have not been registered under the Securities Act of 1933 or any other securities laws and are being offered to qualified institutional buyers as per Rule 144A. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be any sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful.
Qifu Technology is recognized for its sophisticated machine learning models and data analytics capabilities, offering a comprehensive suite of Credit-Tech services to financial institutions, consumers, and SMEs throughout the loan lifecycle. The company’s strong market position is reflected in its impressive financial metrics, including a P/E ratio of 8.36 and a remarkable one-year return of 167.81%. For detailed analysis and 12 additional ProTips about QFIN, including valuation metrics and growth prospects, visit InvestingPro, where you can access the comprehensive Pro Research Report covering what really matters about this rapidly growing fintech company.
This news is based on a press release statement and does not include any promotional content. It is intended to provide factual information only.
In other recent news, Qifu Technology has been the focus of several analyst updates and strategic announcements. BofA Securities analyst Emma Xu has raised the price target for Qifu Technology to $52.70, maintaining a Buy rating. This adjustment follows the company’s announcement of issuing convertible notes to support its March 2025 Buyback Plan, with the notes valued between $600 million and $690 million. These notes, offering a 0.50% annual interest rate, are cash-par settled and have been met with strong investor interest, indicating confidence in the company’s financial health.
Jefferies analyst Thomas Chong also increased the price target for Qifu Technology to $50.00, up from $42.00, while reiterating a Buy rating. This decision comes after Qifu Technology’s fourth-quarter results exceeded consensus estimates, with first-quarter guidance also surpassing market expectations. Jefferies has revised its non-GAAP earnings and EPADS estimates for the company, attributing this to strong execution and the positive impact of its share buyback program.
Qifu Technology’s strategic use of artificial intelligence in operations is noted as a significant factor in its robust performance. The company’s ability to leverage AI in loan applications and other processes has contributed to its favorable outlook. Both BofA Securities and Jefferies highlight Qifu Technology’s solid business execution and commitment to shareholder value as key reasons for their positive ratings.
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