China's Lufax seeks US$60 b valuation with April Hong Kong IPO: SCMP

[HONG KONG] - China's largest online wealth management platform, Shanghai Lujiazui International Financial Asset Exchange, or Lufax, is seeking a valuation of US$60 billion with its April initial public offering in Hong Kong, the South China Morning Post reported on Monday.

Shanghai-based Lufax, which was set up by Ping An Insurance Group in 2011, aims to file a listing application at the end of January, the newspaper said, citing sources close to the company.

Lufax is expected to sell US$6 billion-US$9 billion worth of shares in the IPO, representing 10 to 15 per cent of its valuation, one source told the newspaper.

The company was valued at US$18.5 billion when it raised US$1.2 billion from a group of investors in early 2016. Ping An shares listed in Hong Kong jumped nearly 4 per cent to a record on Monday.

Lufax declined to comment when contacted by Reuters. Ping An did not immediately respond to a request for comment.

With a US$60 billion valuation, Lufax would become the second mega fintech share offering in Hong Kong after ZhongAn Online Property & Casualty Insurance Co Ltd, which raised US$1.5 billion in September, giving it a valuation of US$13 billion.

Lufax is set to become China's second most valuable fintech firm after Alibaba's affiliate, Ant Financial, which was valued at US$75 billion by CLSA in 2016, the newspaper said.

In December, Lufax had mandated Citic Securities, Citigroup, JP Morgan, Morgan Stanley and Goldman Sachs as joint sponsors for the float, according to IFR, a Thomson Reuters publication.

Hong Kong is now set to allow dual-class shares under rule changes to be proposed by the city's stock exchange as it raises the stakes in its battle against New York for blockbuster Chinese initial public offerings.

Such shares grant differentiated voting rights and underpin the alternative governance and shareholding structures favoured by many owners of new age industries such as technology.

REUTERS