To The Moon

🌟🌟🌟On October 23, UP Fintech Holding $Tiger Brokers(TIGR)$   better known as Tiger Brokers announced the pricing of a public offering of 15,000,000 American Depositary Shares (ADRs), each representing 15 Class A ordinary shares of the Company at a public offering price of USD 6.25 per ADS.   The ADS offering is expected to close on October 24 2024.

Tiger Brokers expects to use the net proceeds of approximately USD 90.0 million from the ADS offering for strengthening the Company's capital base and furthering the Company's business development initiatives.

However since the public offering of the additional ADRs, Tiger Brokers' share price has dropped to USD 5.97 which is below the offering price of USD 6.25 per ADS.

Should I sell or hold onto my Tiger shares?

When a company increases the number of shares issued or shares outstanding, this results in share dilution.  It generally has a negative effect on a stock price and original investors' sentiment.

As a Tiger Brokers' user and investor, I do not like my shares to go down in value.  However on the plus side if Tiger Brokers use the additional funds raised to expand its business resulting in greater returns for the company, in the long term it is a positive step to take.

It is also important to consider Tiger Brokers' financial results to determine if it is still growing its business.  So let's take a quick look at Tiger Brokers Q2 24 earnings released on August 30 2024.

In Q2 24, Tiger Brokers' trading volumes increased 23.9% quarter over quarter and 62.5% year over year to USD 105.90 billion.  This is due to a more active market environment and its comprehensive product offerings.

Tiger Brokers ' total revenue for Q2 24 was USD 87.4 million which is an all time high.  This is  10.8% quarter over quarter increase and 32.4% year over year increase.  GAAP Net Income was USD 2.6 million and Non GAAP Net Income was USD 5.2 million.

In Q2 24, Tiger Brokers added 48,900 new funded accounts, bringing total number of funded accounts to 982,600, a 16.8% increase compared to previous year quarter.  As of early August, the total number of funded accounts has exceeded the 1 milion milestone.

Client assets inflow remained strong with a net asset inflow of USD 1.7 billion in Q2 24, leading to total account balance to rise by 16.2% quarter over quarter and 121.1% year over year to USD 38.2 billion.  The rapid expansion of Tiger Brokers' client base and the record setting of total client assets over the past 3 quarters will position it well for sustained long term growth.

Tiger Brokers celebrated its 10th anniversary this year with over 10 million global users.    In Singapore Tiger Brokers have seen a compound growth rate of 539% in local account openings, while customer assets have increased for 5 consecutive quarters.

Tiger Brokers have continued to expand their product offerings with comprehensive brokerage and value added services which includes trade order placement and execution, margin financing, IPO subscription, investor education, community discussion and customer support.  TigerGPT, an AI powered chatbot developed by Tiger Brokers received the Singapore Business Review Technology Excellence Award this year.    Tiger Brokers have also won the Best Retail Broker Award in 2023.

On looking at Tiger Brokers' growth and achievements, I believe that I should not sell my Tiger Brokers'  stock right now  as it still has lots of exponential growth ahead.   Instead I will hold it for the  long term.  However I will have to brace myself in the short term for I expect Tiger Brokers share price to  be volatile.

As Warren Buffett likes to say "Pick Businesses, Not Stocks". When a business does well, the stock should eventually follow. 

I firmly believe that Tiger Brokers' growth story is not over and the journey ahead is filled with lots of exciting growth and myriad opportunities ahead. 

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