PT Stock: Over 20% Increase Pre-Market Explanation

By Amit Chowdhry ● Apr 12, 2021
  • The stock price of Pintec Technology Holdings Ltd (NASDAQ: PT) increased by over 20% pre-market. This is why it happened.

The stock price of Pintec Technology Holdings Ltd (NASDAQ: PT) – a leading independent technology platform enabling financial services in China – increased by over 20% pre-market. Recently the company announced it is going to report the unaudited financial results for the fiscal year ended December 31, 2020 before the U.S. market opens on Wednesday, April 14, 2021.

Investors could also be responding to recent company news

On April 9, 2021, Pintec Technology Holdings Limited had entered into an agreement to acquire all the equity interest in Riche Bright Securities Limited (RB), a securities brokerage firm based in Hong Kong. RB is a registered securities dealer with the HK Securities and Futures Commission under Type 1 license. 

And in connection with the acquisition, the company agreed to issue 35,000,000 non-voting ordinary shares to RB’s original shareholder as the consideration for the sale of RB’s equity interest. And the Consideration Shares will be issued in reliance upon an exemption or exclusion from the registration requirement under Section 5 of the Securities Act of 1933, as amended.

It’s also worth mentioning that another recent SEC report shows that Otov Alfa Holdings Limited attained 320,036,570 shares representing a 51.4% stake in the company. The name of the reporting person in that SEC filing is Xiaojia Li. Li served as the CEO and Executive Director of Hong Kong Exchanges and Clearing between 2010 and 2021.

What was the purpose of this transaction? The SEC filing stated:

“On October 27, 2020, the Issuer publicly announced that Pintec (Yinchuan) Technology Co., Ltd. (the ‘Transferee’), a wholly-owned subsidiary of the Issuer, entered into an Equity Transfer Agreement (the ‘Equity Transfer Agreement’), pursuant to which Ningxia Fengyin Enterprise Management Consulting LLP (the ‘Transferor’) agreed to transfer all the outstanding equity interests in Yinchuan Chuanxi Technology Co., Ltd. (‘Chuanxi Technology’), to the Transferee, in exchange for a total consideration of RMB400,000,000 (the ‘Consideration’).”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.