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Lufax, P2P fintech backed by China’s biggest insurer, said to aim for IPO in the US this year
- Lufax is following in the footsteps of OneConnect, another Ping An Insurance unit, to the US market
- Lufax was valued at US$39.4 billion in a 2018 funding round
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Lufax Holding, which runs an online wealth management and peer-to-peer lending platform, is planning an initial public offering in the US this year, according to a person familiar with the matter, amid heightened scrutiny on US-listed Chinese companies in recent months.
The company is pursuing its long-held ambitions to list in the US as many of its investors and creditors are based in New York, the person said, declining to be named becaused the information is private. Lufax will follow in the footsteps of OneConnect Financial Technology, which raised US$312 millionin its New York Stock Exchange debut in December.
Both Lufax and OneConnect are backed by Ping An Insurance (Group), China’s largest insurer.
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The decision to stick with a US listing bucked recent trend where Chinese companies, predominantly technology firms, have decamped and turned to Hong Kong and Shanghai for capital amid a regulatory backlash in the US. They were preceded by Semiconductor Manufacturing International Corp, China’s biggest chip maker, which ended its 15-year stay on the NYSE in May last year.
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Founded in 2011, Lufax was valued at US$39.4 billion during its last-known funding round at the end of 2018. Its business is about breaking even, the person familiar said.
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