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
Both Lufax and OneConnect are backed by Ping An Insurance (Group), China’s largest insurer.
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.
While it has previously contemplated a listing in Hong Kong in early 2018, the plan did not materialise for unknown reasons.
A US listing this time, however, is made easier because the company is registered in the Cayman Islands and it has a lower profile than many other Chinese internet giants. Lufax had 44 million registered users on its platform on December 31, while its rival Ant Group had about 900 million.
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The group has also moved into non-performing loans, just as the asset class swells and prices slip as economies globally slow down or contract. The balance of Lufax’s loans have grown steadily, while only 1.9 per cent of its outstanding loans are more than 30 days overdue, people familiar said.