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China wealth manager platform Lufax aims to raise $2.36 billion in U.S. IPO

Published 23/10/2020, 04:35
Updated 23/10/2020, 04:40
© Reuters. FILE PHOTO: A sign of wealth management platform Lufax is seen during an expo in Beijing

By Scott Murdoch

HONG KONG (Reuters) - Lufax Holding Ltd , one of China's largest online wealth management platforms, aims to raise up to $2.36 billion (1.8 billion pounds) in a U.S. initial public offering just days before the Nov. 3 election.

A filing with the Securities and Exchange Commission (SEC) showed Lufax plans to sell 175 million American Depository Shares (ADS) within a price range of $11.50 to $13.50 each.

There is a so-called green shoe option to sell a further 26.25 million ADS that can be exercised within 30 days of listing. It will list the ADS on the New York Stock Exchange.

The deal's launch comes just before the U.S election which analysts expect could prompt a renewed burst of market volatility around the Nov. 3 polling date.

Lufax is briefing Asian investors Friday, showed a term sheet reviewed by Reuters, and will speak with prospective U.S. and European buyers on Monday.

The price of the stock is due to be finalised Thursday, the term sheet showed.

© Reuters. FILE PHOTO: A sign of wealth management platform Lufax is seen during an expo in Beijing

Lufax, backed by Ping An Insurance Group Co of China Ltd (HK:2318) (SS:601318), postponed a Hong Kong listing slated for the first half of 2018 amid uncertainty over China's consumer lending regulation.

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