Webull, a Retail Trading Platform, Seeks Investors Ahead of Nasdaq Debut

Wanted: investors in a Chinese-owned online brokerage. No financial statements given. Must be OK with putting money in a potentially volatile stock and not having any voting rights. Webull, a retail share trading platform founded by Wang Anquan, gained popularity in 2021 during the meme stock trading frenzy and is set to go public on the Nasdaq after merging with a special purpose acquisition company, raising about $100mn. The implied enterprise valuation of $7.3bn raises concerns among SK Growth shareholders. The company achieved a post-money valuation of about $3.6bn in 2021. Webull's lack of financial transparency has raised questions about the jump in valuation, despite the subsiding retail trading mania and higher interest rates. A financial statement and revenue/profit disclosure are notably absent. Webull relies on payment for order flows to finance its zero-commission business model. Its governance, with a low free float and a dual class share structure, poses potential risks for investors. SK Growth shareholders face the decision as the merger nears, providing a closer look into the future prospects of Webull. For full details, you can click to explore the FT’s concise daily investment column.