(Yicai Global) Oct. 24 -- China online real estate agent service platform Shenzhen Fangdd Network Group, which is poised to list on New York's Nasdaq Stock Exchange, plans to raise up to USD121 million in its initial public offering, according to Tampa, Florida-based IPO research institute IPO Boutique.

Fangdd will be wooing in the range of USD13-USD15 per share and will issue 7 million American Depositary Shares in total, with each equal to 25 shares of common stock, it reported in supplementary documents it submitted to the US Securities and Exchange Commission yesterday. If the underwriters execute the over-allotment and issue at the higher price, the firm's funding will thus reach USD121 million.

The company's shares will start trading on Nov. 1. The proceeds from this flotation will mainly go to improving its research and development capability, investment in technology, sales, marketing and brand promotion and prospective investments and acquisitions, it previously stated in its prospectus tendered on Oct. 9.

Formed in 2011, FangDD is an online real estate marketplace that adopts the Software-as-a-Service model. The platform had 1.07 million registered property agents as of the end of June, with its penetration rate within the sector reaching almost 50 percent, per the prospectus.

The company's business revenue was CNY1.6 billion (USD226.6 million) in the first half, up 55.4 percent annually, and it earned net profit of CNY100 million in a rise of one and two-thirds over the same period last year. Basic commission fees from property deals are its main income source.

SaaS is a software distribution mechanism where a third-party hosts applications and allows access to them to its online users.

Editor: Ben Armour