Chinese personal financial services platform, Lufax Holding Ltd (LU), announces plans to raise $2.2 billion in an initial public offering (IPO)
Lufax Holding Ltd (LU) has announced plans to raise about $2.2 billion in an initial public offering (IPO), with the company issuing 175,000,000 shares at a price ranging between $11.50 and $13.50 per share. The company’s financials will make the IPO attractive to investors across the globe, especially as fintech companies continue to disrupt the financial services industry. Lufax Holding Ltd generated $3.6 billion in revenue last year, with $1 billion in net income. The company has a market cap of $15.2 billion, another feature that makes it an investment attraction.
The IPO has already started to gain traction with the likes of BofA Securities, Goldman Sachs (Asia), China PA Securities (Hong Kong) Co., UBS Investment Bank, HSBC, Morgan Stanley, CLSA, and Jefferies all serving as the underwriters for the IPO. BOCI, J.P. Morgan, Stifel, Haitong International, China Renaissance, and KeyBanc Capital Markets were co-managers.
Lufax Holding Ltd has been described as one of the leading technology-empowered personal financial services platforms in China. The company aims to make retail borrowing and wealth management easier, safer, and more efficient for all stakeholders. Lufax focuses on addressing the large unmet demand for personal lending, especially among small business owners and salaried workers in China. The company provides tailor-made wealth management solutions to China’s fast-growing middle-class and affluent population.
According to figures in the prospectus, the company’s total balance of retail credit facilitated as of June 30, 2020, reached RMB519.4 billion (US$73.5 billion), with the total client assets generated through their online wealth management platform topping RMB374.7 billion (US$53.0 billion). These feats helped the company to rank second and third respectively, among non-traditional financial service providers in China such as fintech companies, online-only TechFin companies, and online lending platforms, according to Oliver Wyman.
“The history of our retail credit facilitation business dates back to August 2005, when Ping An Group launched a consumer loan business in Shenzhen, China. The history of our wealth management business dates back to September 2011, when Ping An Group established its wealth management subsidiary in Shanghai.”
Founded in 2005, LufaxHolding Ltd has grown over the years, currently with about 60000 employees.
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