Chinese fintech Lufax targets $3bn in US IPO
Chinese fintech giant Lufax, backed by Ping An Insurance Group, is targeting to raise at least $3 billion in a US initial public offering (IPO), according to Bloomberg.
Lufax morphed into a financial giant offering wealth management and retail lending services.
The start-up is weighing a US share sale as soon as this year, after previously exploring an offering in Hong Kong, according to the publication’s sources.
Bank of America, Goldman Sachs Group and UBS Group are among banks helping preparations for the share sale, according to the sources. HSBC and JP Morgan Chase have also done some early work on the deal.
The bank line-up hasn’t been finalised, and details of the offering could change, as reported by Bloomberg sources.
The sources also highlight that political tensions between the US and China could also affect Lufax’s listing plans.
Lufax is preparing for a confidential filing, Reuters reported earlier on 22 July, citing unidentified people. Reuters didn’t specify the size of the potential offering. Representatives for Bank of America, Goldman Sachs, HSBC, JP Morgan, Lufax and UBS declined to comment.
Lufax, which was once among the country’s largest peer-to-peer (P2P) lenders, has morphed into a financial giant offering wealth management and retail lending services.
The start-up, which has explored an IPO for some years, transformed its business after Chinese authorities launched a sweeping crackdown of the P2P lending sector.
Its assets under management dropped by 6.1% in 2019 after “asset portfolio adjustment and restrictions on consumer finance products” slashed transaction volumes by 30%.
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