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Ping An's OneConnect Financial files for IPO amid US lull
[NEW YORK] China-based cloud fintech platform OneConnect Financial Technology Co filed for an initial public offering in a listing that could help buoy the sagging market for new US listings.
The company, an affiliate of Ping An Insurance (Group) Co, in a filing on Wednesday listed its offering size as US$100 million, typically a placeholder that may change. OneConnect earlier targeted a Hong Kong listing that could raise about US$1 billion and value it at about US$8 billion, Bloomberg reported in February.
OneConnect's filing follows this year's surge of US IPOs that peaked with Uber Technologies Inc's US$8.1 billion offering in May. Twenty listings in October raised US$2.41 billion, though plans for several big listings were scrapped or delayed, according to data compiled by Bloomberg.
The year's US listings - 158 raising more than US$47 billion combined - have included 24 by China and Hong Kong-based companies that accounted for US$3.05 billion. Only three of those companies are currently trading above their offer price, the data shows.
OneConnect, backed by SoftBank Group Corp's Vision Fund, provides technology solutions that help increase revenue and manage risks for small and midsize financial institutions in China.
OneConnect had a net loss of US$147 million on revenue of US$218 million during the nine months ended Sept 30, compared with an US$82 million net loss on revenue of US$128 million for the same period last year, the filing shows. Since 2017, Ping An Group has extended to OneConnect more than US$1 billion in loans with interest rates ranging from 4.55 per cent to 7.3 per cent.
The offering is being led by Morgan Stanley, Goldman Sachs Group Inc, JPMorgan Chase & Co and Ping An Securities Group Holdings Ltd. OneConnect said in the filing that it plans to list its shares on the New York Stock Exchange or the Nasdaq Global Market under the symbol OCFT.