Ping An-Backed Lufax Eyes U.S. IPO This Year

One of China's largest online wealth management firms looks to list in New York as soon as this year.
Anthony RussoJul 22,2020,17:00

The Chinese online wealth management firm Lufax, backed by the financial heavyweight Ping An Insurance Group (HKEX: 2318) is looking to list its shares in the U.S. as soon as this year.

According to three people cited by Reuters today, Lufax has enlisted Goldman Sachs, Bank of America, HSBC, JP Morgan, and UBS to work on the IPO. At the time of its last fundraising round, Lufax was valued at $38 billion in 2018, the report said.

The potential listing comes at a time where trade tensions between China and the U.S. remain high, as the buffoon-in-chief Trump continues to label the coronavirus the “Chinese virus”. However, even after the Luckin Coffee scandal, American investors have been bullish to some recent listings.  

Though IPO’s and secondary offerings, Chinese firms have raised $47.5 billion in 2020, which is approximately half of the global volume, according to data by Refinitiv. Software module provider Agora Inc. (Nasdaq: API) and the cloud computing firm Kingsoft Cloud Holdings Ltd., (Nasdaq: KC) which both went public in June and May respectively, have watched their stocks more than double from their IPO prices. The two companies raised a combined $860 million in their debuts.

Another Ping An-backed company, OneConnect Financial Technology Co. Ltd., (NYSE: OCFT) which provides tech solutions in the financial sector, has also watched its shares more than double from its IPO after a disappointing trading debut in December. 

Based in Shanghai, Lufax is one of China’s largest online wealth management platforms. The company focuses on providing lending services to small-to-medium enterprises and individuals, as well as its online finance marketplace. 

Currently, Lufax is readying a confidential filing for the listing, according to Reuters.