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Lufax Holding Ltd., one of China’s most extensive lending and investment companies, filed an initial public offering to go public in the U.S.
Lufax is a Shanghai-based firm backed by banking and finance firm Ping An of China. Founded in 2005, Lufax has already reported $7.4 billion in revenues for the last fiscal year, which ended last June.
As of June 30, 2020, Lufax’s assets totaled $53 billion from its online wealth management platform. According to a Securities and Exchange Commission filing, Lufax is planning to be listed on the New York Stock Exchange under the “LU” ticker.
The firm was last valued at approximately $39.4 billion, following the December 2019 OneConnect filing by Ping An of China. This 2019 filing has raised $312 million.
However, the number of shares to be listed, and their share prices have not been disclosed to the public. According to estimated reports, Lufax is planning to raise $100 million through the IPO, with the deal potentially amounting to $3 billion.
According to Nasdaq, the joint book-runners for the said deal are Goldman Sachs, BofA Securities, UBS Investment Bank, HSBC, PingAn Securities, Morgan Stanley, CITIC CLSA, and Jefferies.
Despite the rising geopolitical tensions between the U.S. and China, several Chinese tech firms have shown interest in filing for U.S. IPOs to take advantage of a stock market rebound. Xpeng Motors and Li Auto, electric car manufactures, filed for separate U.S. IPOs in early 2020.
FinTech Giant Ant Group is also preparing for an IPO debut on the Hong Kong Stock Exchange and Shanghai Stock Exchange’s STAR Market. However, Washington lawmakers’ scrutiny threats are on the rise as they push to delist some Chinese firms in the U.S.
It could have been why U.S.-listed firms, including Alibaba, have opted to get secondary listings in Hong Kong.
“A severe or prolonged downturn in the Chinese or global economy could materially and adversely affect our business and financial condition… There is significant uncertainty about the future relationship between the United States and China with respect to trade policies, treaties, government regulations, and tariffs. Economic conditions in China are sensitive to global economic conditions, as well as changes in domestic economic and political policies and the expected or perceived overall economic growth rate in China.”Lufax’s SEC filing
The financial giant filed confidentially last July 28, 2020.