Shares of Yuanbao Inc. (YB), a Chinese insurance broker, are soaring 44.40% in their Nasdaq debut on Wednesday, marking a strong start for the company's initial public offering (IPO). The significant surge reflects robust investor interest in the Beijing-based firm's market entry.
Yuanbao's stock was indicated to open at $23.25, well above its IPO price of $15 per share. The company had marketed 2 million American depositary shares (ADSs) at a price range of $13 to $15 each. This impressive opening price represents a substantial premium over the initial offering, highlighting the strong demand for Yuanbao's shares.
Founded in 2019, Yuanbao has shown remarkable growth, with revenue reaching $450 million in 2024, a 60% increase from the previous year. The IPO was led by prominent underwriters including Goldman Sachs, Citigroup, and CICC. Notably, certain existing shareholders had expressed interest in purchasing up to $17 million of the offered ADSs, further bolstering confidence in the company. Post-IPO, CEO Rui Fang will maintain control of over 90% of Yuanbao's voting power, ensuring continuity in leadership.