Uxin, one of China’s major online marketplaces to buy and sell used cars, announced a convertible note purchase agreement with affiliates of 58.com, Warburg Pincus, TPG, and other investors.
Under this deal, Nasdaq-listed Uxin will issue and sell convertible notes worth USD 230 million at an interest rate of 3.75% per annum. Each note can be turned into Class A ordinary shares of the company at a conversion price of USD 1.03 per share (equivalent to USD 3.09 per ADS).
In after-hours trading, Uxin shares rose 13.8% to reach USD 2.8 from its close price of USD 2.46 on Tuesday.
Uxin’s shares have decreased by nearly 50% since the start of this year, bringing its market capitalization to as low as USD 652.3 million. Meanwhile, Chehaoduo, which owns Uxin rival Guazi.com, was valued above USD 9 billion after it raised USD 1.5 billion from SoftBank’s Vision Fund, KrAsia reported in March.
Julian Cheng, co-head of China at Warburg Pincus, said, “There is huge potential in China’s used car sector. As a leading player, Uxin has been a pioneer in digitizing the used car industry through its revolutionary business model. Warburg Pincus will continue to support Uxin’s growth strategy, as we remain confident in the company’s vision and capability to create long-term value.”
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