China

Ping An Insurance’s Lufax to Reportedly Bring IPO Application Forward 3 Months

Summary:

  • Lufax, Ping An Insurance’s (601318.SS) peer-to-peer (P2P) lending platform, expects to bring its IPO application forward three months to next January, as reported by Hong Kong Economic Times.
  • The company will be listed in Hong Kong.

Why It Matters:

  • Lufax is one of the largest P2P lending platforms in China. Ping An Insurance believes the current market is ideal and the company plans to accelerate the spin-off of Lufax and launch the IPO of the platform. The original plan was to get listed on the Hong Kong Stock Exchange next March or April.
  • Lufax currently manages RMB 476 billion in assets and it might raise US$ 3-5 billion in its IPO. Ping An Insurance has not revealed Lufax’s performance but it suggests that it is already posting profits.  
  • Many investment banks have not incorporated Lufax’s valuation into the value of Ping An Insurance. The spin-off of Lufax and the following IPO is expected to boost Ping An Insurance’s stock price by 15%.