Fortune Road Securities, with 380,000 customers, is the largest securities dealer in Hong Kong, mainly in Hong Kong and U.S. stocks. Futu Niuniu has more than 5 million users. Over the past two years, the growth rate of rich-purpose users and customers has been around 300%.
According to Reuters, sources said that Fortune Securities, an Internet brokerage, plans to be listed in New York in early 2019. One of the sources said the company's target valuation was about $2.5 billion.
Despite Tencent's support, Fortune Securities prefers to list in New York, one of the sources pointed out, partly because of the faster listing in New York and the poor performance of recent Hong Kong-listed stocks. The U.S. market allows clandestine applications without having to disclose key business and financial information to the market and competitors from the outset.
According to the media, the initial public offering of Fortis Securities is up to $500 million. Fortis did not respond to requests for comment, nor did Goldman Sachs and UBS, which were hired to arrange the deal.
User growth is fast and younger
Futu Securities is one of the two main businesses of Futu Group. It is a new internet securities firm supervised by the Hong Kong Securities Regulatory Commission. It was selected as "China Unicorn List" by the Ministry of Science and Technology in March 2018.
Futuo Securities, known as Futuo Securities International (Hong Kong) Limited, is a licensed corporation recognized by the Hong Kong Securities Regulatory Commission and a participant in the Hong Kong Stock Exchange. Futuo Securities is an Internet company engaged in securities business. It mainly provides services for overseas investment of domestic investors. At present, Futuo Securities has obtained licenses in Hong Kong, the United States, Singapore and other markets.
According to public information, Futuo Group currently has about 600 employees, including more than 50 financial-related employees, all of whom work in Hong Kong Futuo Securities Company. The remaining staff are in Shenzhen Futuo Network Technology, including R&D, products, operations and a series of departments. The company was registered in April 2012 and released several versions of Futu Niuniu (PC, MAC, IOS, Android, etc.) in 2013.
As of February 7, 2018, the company's cumulative transaction value exceeded 100 billion.
According to the trading market, the main business of Fortune Road Securities is Hong Kong Stock Market and American Stock Market. At present, Fortune Securities is the largest securities firm in Hong Kong with 380,000 customers, far exceeding its peer level. Futu Niuniu has more than 5 million users. Over the past two years, the growth rate of rich-purpose users and customers has been around 300%.
In addition, Futu Securities customers are younger, with an average age of 25 to 40 years, covering almost all TMT employees in China. In the first half of this year, Futuo Niuniu launched a cross-market trading service, which enables investors to switch freely between Hong Kong and American stocks without exchange.
Future positioning or more than brokerage
Cheng Cheng, an analyst in Guoxin Securities and Communications, said in the research paper that Futuo Securities'future development goal will continue to cultivate its existing main business and expand its international market. At present, Futuo Securities has won the US and Singapore licences, but has not yet reached the stage of considering expanding new business such as wealth management.
Cheng Cheng believes that Fortune Securities has opened American stock options on its business platform, and other products will be opened one after another. At present, the company's strategic market is temporarily focused on individual customers. When the business grows, Fortune Securities will extend its services to some highly demanding trading institutions.
He said that Fortune Road would expand its banking and insurance businesses in the future and develop into an integrated financial system. In the short run, Futuo is an Internet brokerage, but in the long run, Futuo's positioning is more than one brokerage.