Greg Gibb, CEO, Lufax. Photo credit: World Economic Forum / Sikarin Thanachaiary, licensed under Creative Commons

Lufax, a Chinese fintech company, is seeking to raise up to $2.36 billion in a US public offering that would mark one of the biggest-ever such public offerings by a Chinese company on a US stock exchange. Lufax, which filed to go public earlier this month, has said it’ll issue 175 million American depositary shares (ADS) that’ll be priced between $11.50 and $13.50 apiece, being that at the $13.50 top range, the company could raise an aggregate of $2.36 billion on the New York Stock Exchange.

Lufax is one of China’s biggest fintech companies, offering retail lending and wealth management services. Originally, Lufax was a peer-to-peer lending platform and one of the largest of its kind before the Chinese government widely cracked down on peer-to-peer lending businesses. Following the crackdown, Lufax staged a successful pivot to offering wealth management and retail lending services and has been very successful at that.

As of June this year, Lufax had $73.5 billion in outstanding loans and $53 billion under management for its clients. The company clinched a net profit of $1 billion on revenue of $3.6 billion in the first half of this year.

As a private company, Lufax has raised $3 billion in outside funding, with backers including big names like JP Morgan Chase, UBS, Goldman Sachs, and the Qatar Investment Authority. 

Lufax, which was founded in 2011, is affiliated with Ping An Insurance, a Chinese holding conglomerate whose subsidiaries mainly deal with insurance, banking, and financial services. The company’s planned IPO comes at a time when another Chinese fintech giant, Ant Group, is also working on a big public listing that could set the world record for the highest amount raised from a public offering.

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print