Futu Holdings Limited (FHL)

  • Offer Price

    $12

  • Offer Size

    7,500,000

  • 3-Year Outlook

    Positive

  • Volatility

    High

  • First Day Turnover

    96.47%

Description

We are an advanced technology company transforming the investing experience by offering a fully digitized brokerage platform. Technology permeates every part of our business, allowing us to offer a redefined user experience built upon an agile, stable, scalable and secure platform. We primarily serve the emerging affluent Chinese population, pursuing a massive opportunity to facilitate a once-in-a-generation shift in the wealth management industry and build a digital gateway into broader financial services. As of December 31, 2018, we had an attractive and rapidly growing user base of 5.6 million, over 502,000 registered clients, defined as users who have opened trading accounts with us, and over 132,000 paying clients, defined as registered clients who have assets in their trading accounts. In 2018, we brokered HK$907.0 billion (US$115.8 billion) in client trades. According to Oliver Wyman, we ranked fourth among Hong Kong online retail brokers in terms of online brokerage revenue for the six months ended June 30, 2018.

We launched our business on the premise that no one should be precluded from investing on the basis of prohibitive transaction costs or market inexperience. We thus designed a platform around an elegant user experience integrating clear and relevant market data, social collaboration andbest-in-class trade execution, finding that by delivering our vision through a purpose-built technology infrastructure we could disrupt traditional investing conventions. Over the last eight years we have continuously enhanced our technology and built a comprehensive, user-oriented and cloud-based platform that is fully-licensed to conduct securities brokerage business in Hong Kong. This serves as a foundation from which we execute our growth strategies with an operating efficiency that allows us to offer commission rates that are approximately one-fifth of the average rate offered by the leading players in Hong Kong, according to Oliver Wyman, creating a massive barrier to entry. As of December 31, 2018, approximately 65% of our workforce was dedicated to research and development, reflecting the degree to which technological excellence is entrenched in every aspect of our business.

Lawyers

  • Skadden, Arps, Slate, Meagher & Flom LLP

Auditors

  • PricewaterhouseCoopers Zhang Tian LLP
Investors
Pre-IPO Holdings(%)
  • Google Ventures
  • Intel Ventures
  • Patricoff Ventures
  • Kleiner Perkins
  • 30
  • 20
  • 5
  • 18

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