China UnionPay subsidiary UnionPay Merchant Service (银联商务) (UMS) plans to list on the Shanghai Stock Exchange’s new NASDAQ-style STAR Market board.
The Shanghai securities regulator has just revealed that UMS executed a listing guidance agreement with China International Capital Corporation in August 2020.
This guidance work will involve preparations for UMS’s A-share initial public offering (IPO) on the STAR Market board of the Shanghai Stock Exchange.
UMS provides mobile payment, smart POS terminal, logistic services, big data services and advertising services via its UMS PAY (全民付) brand, and bills itself as a “comprehensive payments and information services organisation that engages in offline, Internet and mobile payment operations.”
The company was founded in 2002, and as of 2017 had registered capital of 2.789 billion yuan (approx. USD$408.4 million).
In 2019 UMS processed 12.73 billion transactions worth 15 trillion yuan, making it one of China’s largest comprehensive payments service providers.
UMS’s fully invested subsidiary ChinaPay (银联电子支付) is the first Internet company in China with a unified payments gateway, and the first third party payments Internet company to undertake cross-border operations.
ChinaPay is also amongst the first batch of payment companies to obtain a dual license for cross-border foreign currency and cross-border renminbi operations from Chinese regulators.
According to filing information UMS’s main shareholders include:
- Shanghai Union Venture Capital Co. (上海联银创业投资有限公司) (55.54%),
- Beijing Guangji Shanghai Consulting Partnership Enterprise (Limited Partnership (北京光际尚嘉咨询合伙企业（有限合伙）) (9.34%),
- Zhejiang Minying Qiye Lianhe Investment Share Co., Ltd. (浙江民营企业联合投资股份有限公司) (5.98%),
- Zhuhai Hengqin Dingjian Huaxing Investment Partnership Enterprise (Limited Partnership) (珠海横琴鼎建华新投资合伙企业（有限合伙）) (5.5%).
As of the end of May 2020 UMS has established offices in all of mainland China’s province-level entities, achieving a coverage rate of 100% for all prefecture-level cities.