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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Noah Holdings (NYSE:NOAH) is a Chinese financial services company which focuses on distributing wealth management products to high net worth individuals in China. Noah Holdings focuses on offering and advising their clients on which third-party wealth management products they should use. They make money through one-time commissions and recurring fees by the third-party providers of the product. They are the largest independent wealth management distributor in China in terms of the number of clients. These clients are affiliated with one of the company's 28 branches which are located in regions with the highest concentrations of high net work individuals. In addition, this population has grown at an compounded annual growth rate of 21.5% from 2003 to 2009.[1]
As China's economy has continued to grow rapidly, so has the number of wealthy individuals. As of 2010, China ranked fourth in terms of the total number of high net worth individuals (HNI). These wealthy individuals are defined as those who have at least $1M in assets such as cash, stocks, and bonds which are readily investable. The country also contains the second highest number of billionaires, only beaten by the United States. These individuals are also substantially younger than those abroad. The average age of China's millionaires is 39 years and the average age of its billionaires is 43 years old. This is over 15 years younger than the average of most other countries. Noah Holdings expects that the number of high net worth individuals will continue to rise substantially as China's economy continues to develop.[2]
The company's initial public offering of stock on the NYSE occurred on November 9, 2010. The company offered 8.4M ADSs each for $12. This was above the initial price range of $9-$11. The IPO raised a total of $101M. The lead underwriters of the deal were J P Morgan Chase (JPM) and Bank of America (BAC).[3]
Noah Holdings has been able to increase its revenues over the last 3 years. Its 2009 total revenue was $14.6M, which was a 74% increase over 2008. The company experienced a net loss in 2008 of -$600K, but has since then achieved a net income of $3.4M in 2009.[4]
References
- ↑ NOAH F-1 2010 PROSPECTUS SUMMARY "Overview" pg 1-2
- ↑ NOAH F-1 2010 PROSPECTUS SUMMARY "Our Industry" pg 3
- ↑ Renaissance Capital - IPO Home "China-based wealth management company Noah Holdings prices IPO at $12, above the range" 9 Nov 2010
- ↑ NOAH F-1 2010 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pg 11
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