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IPO

IPO

China’s Lufax plans Hong Kong IPO in April at US$60 billion valuation: sources

Ping An Insurance unit’s IPO could surpass ZhongAn Online’s offering in September

PUBLISHED : Friday, 12 January, 2018, 7:41pm
UPDATED : Saturday, 13 January, 2018, 1:05pm

Lufax, one of China’s major online wealth management platforms, plans to launch an initial public offering in April in Hong Kong, which could value the firm at about US$60 billion in what could be the city’s biggest fintech flotation.

The Ping An Insurance unit plans to file its applications to the Hong Kong exchange at the end of this month, according to people with knowledge of the matter.

The flotation could push Lufax’s valuation to US$60 billion, a three fold increase from US$18.5 billion after its last funding round in 2016.

Lufax rides internet finance boom

Banks are still discussing the percentage of shares that could be sold, with initial estimates putting it at around 10 to 15 per cent of the company’s valuation, or US$6 billion to US$9 billion, one of the sources said.

Citic Securities, Citi, JP Morgan, Morgan Stanley and Goldman Sachs are joint sponsors on the deal.

Lufax declined to comment.

Currently, Lufax has 33 million registered users, with the assets under management at nearly 500 billion yuan (US$77.3 billion).

Will Chinese investment banks run Hong Kong IPO market in 2018?

Lufax became profitable in the first half of 2017, Ping An Insurance said in its semi-annual report last year.

China currently is home to some of the world’s largest fintech companies, including Alibaba affiliate Ant Financial, the operator of Alipay. Alibaba owns the South China Morning Post.

In 2016, CLSA analysts estimated Ant Financial was worth US$75 billion.

In September, ZhongAn Online Property & Casualty, China’s first internet-only insurer, raised US$1.5 billion in its Hong Kong IPO, with a valuation of US$13 billion. It was the city’s first major fintech flotation. ZhongAn’s co-founders include Alibaba’s Jack Ma Yun, Tencent’s Pony Ma Huateng, and Ping An Insurance’s Peter Ma Mingzhe.

Additional reporting by Peggy Sito

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