On October 17, 2017, Qudian issued 37.5 million American Depository Shares at $24 per share under a Registration Statement and Prospectus filed with the U.S. Securities and Exchange Commission, for gross proceeds of $900 million. According to Qudian's IPO prospectus, "[a]s a provider of online credit products, we use big data-enabled technologies, such as artificial intelligence and machine learning, to transform the consumer finance experience in China."
On November 21, 2017, Chinese media sources began to reveal that the personal information of millions of Qudian customers were allegedly available for sale on the black market. On November 23, 2017, Bloomberg reported that "Chinese regulators and police are investigating a potential leak of data from online lender Qudian Inc., according to people with knowledge of the matter. Officials are probing allegations that data from more than a million students who are clients of Beijing-based Qudian was leaked and possibly sold online, said the people, who asked not to be named discussing private information . . . The Chinese company's IPO prospectus didn't mention any leaks of data containing customer information. Violations of protecting personal information carries possible penalties including shutdown of websites or cancellation of business licenses under China's Cybersecurity Law." Between November 21 and 23, 2017, Qudian shares declined over 36%.
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