China’s Lufax Pursues U.S. IPO

Joseph B. Hash

Chinese online prosperity management agency Lufax Holding Ltd is seeking an first general public supplying in the United States and list American Depositary Shares on the New York Inventory Exchange. What Took place: The company, backed by Ping An Insurance plan (Group) of China, has not disclosed the size of […]

Chinese online prosperity management agency Lufax Holding Ltd is seeking an first general public supplying in the United States and list American Depositary Shares on the New York Inventory Exchange.

What Took place: The company, backed by Ping An Insurance plan (Group) of China, has not disclosed the size of the supplying but proposed a placeholder amount of money of $one hundred million in a filing with the U.S. Securities and Exchange Commission.

The shares would be listed beneath the image “LU.”

Goldman Sachs Group, Financial institution of America’s Investment decision banking arm BofA Securities, UBS Group, HSBC Holdings, and China PA Securities are serving as the lead underwriters for Lufax’s IPO.

The company arrived into existence in 2011 as a peer-to-peer system but has been exiting all those operations because of to regulatory constraints in China, reviews Reuters.

It recorded a web gain of $1.07 billion for six months major up to June 30, compared with $1.01 billion in a comparable period of time a yr previously.

Why It Matters: The listing of the prosperity management company will come soon after the December 2018 listing of OneConnect Economical Tech Co Ltd, another fintech backed by Ping An that elevated $312 million, Reuters pointed out.

Lufax reportedly postponed its 2018 Hong Kong listing because of to widespread uncertainty more than lending polices in China.

In May well, the United States Senate handed new polices that could lead to the delisting of Chinese corporations from domestic exchanges.

Worsening U.S.-China relations indicate some corporations are pursuing dual listings on the mainland and Hong Kong exchanges.

Alibaba Group Holding Ltd subsidiary Ant Economical is aiming to raise the world’s major IPO valued at $35B and ideas to simultaneously list on Hong Kong and Shanghai exchanges.

Cost Action: Ping An OTC shares shut practically .three% reduced at $twenty.74 on Wednesday.

This tale initially appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not present investment decision information. All legal rights reserved.

Wu Jun/VCG through Getty Images

Benzinga, China, Lufax, Ping An Insurance plan (Group) of China

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