Ping An-Backed Fintech Firm Lufax Aims To Raise Up To $2.3B In NYSE IPO

Aditya Raghunath

Fri, Oct 23, 2020, 2:42 AM2 min read

Lufax Holding Ltd. in a filing with the U.S. Securities and Exchange Commission on Thursday disclosed it is seeking to raise up to $2.36 billion in proceeds in its initial public offering.

What Happened: The Chinese fintech firm plans to issue 175 million American Depository Shares (ADS) in the offering, with each unit priced between $11.50 and $13.50. Two ADS will be equal to one ordinary share in the company.

Underwrites for the IPO of the Chinese insurance giant Ping An Insurance (Group) Company of China Ltd. (OTC: PNGAY)-backed Lufax are entitled to a greenshoe option to buy an additional 26.25 million ADS, within 30 days of the offering. If the underwriters exercise the option in full, the management estimates capital proceeds of $2.42 billion at $12.50 per ADS.

After a scheduled briefing for Asian Investors on Friday, Lufax plans to hold similar discussions with European and American investors on Monday, according to Reuters.

Why Does It Matter: At $2.36 billion, Lufax IPO could set the record as the largest Chinese fundraiser of this year in the U.S., Bloomberg noted. Based on the total outstanding shares, Lufax could reach an enterprise valuation of approximately $33 billion.

From its modest start in 2011 as a peer-to-peer lending platform, the Chinese fintech company has expanded into the wealth management and retail lending business. In June, the company facilitated $73.5 in retail lending and reported $53 billion of client assets under management from its online wealth management portal.

Lufax disclosed its intent for a public listing on the New York Stock Exchange earlier this month. It would be listed under the symbol "LU."

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Ping An-Backed Fintech Firm Lufax Aims To Raise Up To $2.3B In NYSE IPO

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