Why UP Fintech Holding Stock Popped Today
What happened
Less than a week after UP Fintech Holding (NASDAQ: TIGR) stock sold off in response to Q1 earnings, shares of the Chinese online brokerage are rebounding nicely today -- up 10.5% as of 1:15 p.m. EDT -- on news that the company has a big fan in the United States.
That would be Greenwich, Connecticut-based Interactive Brokers (NYSEMKT: IBKR).
So what
In a Schedule 13D filing last night with the Securities and Exchange Commission, a company related to Interactive Brokers -- IB Global Investments LLC (IBGI) -- disclosed that with UP Fintech's recent initial public offering, IBGI converted its 137,635,322 Series B-3 preferred shares, purchased last year, into an equivalent number of Class A ordinary shares of UP Fintech. In addition, IBGI purchased 13,125,000 more shares of common stock in UP Fintech "in a concurrent private placement transaction for $7 million."
As a result, IBGI now owns nearly 150.8 million shares of UP Fintech. That amounts to 7.6% of Class A ordinary shares, according to the filing.
It's clear that IBGI seems to think that UP Fintech is a worthy investment. It appears that, based on that assessment, other investors are buying in today.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Interactive Brokers. The Motley Fool has a disclosure policy.