Q International Group, the operator of Chinese apartment rental platform Qingke, is planning to raise nearly $100 million in its US initial public offering, the company said in an updated regulatory filing published on Friday.

Why it matters: Growth potential for branded apartment rentals is significant: the market penetration rate in China was only 1.8% in 2018, and is expected to reach 11.2% by 2024, according to figures from China Insights Consultancy cited in the prospectus.

Market penetration in developed countries was 46.0% in contrast, according to the data.

Qingke is competing against a number of peers including Ziroom, Mofang Appartment, Danke Apartment, and even e-commerce giants like JD.com.

China’s apartment rental sector faces a range of challenges including problematic construction quality and tenant security, as well as tighter regulatory control.

Details: The company plans to price its shares at $17 to $19 apiece for its debut on Nasdaq, according to the filing.

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