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

Credit: REUTERS/CHINA STRINGER NETWORK

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

By Scott Murdoch

HONG KONG, Oct 23 (Reuters) - Lufax Holding Ltd LU.N, one of China's largest online wealth management platforms, aims to raise up to $2.36 billion 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.

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

(Reporting by Scott Murdoch in Hong Kong; Editing by Christopher Cushing)

((Scott.Murdoch@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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