Ping An fintech spinoff OneConnect Financial Technology files for a $100 million US IPO

OneConnect Financial Technology, a Ping An-backed provider of operations management tools for financial firms, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering. However, the deal size is likely a placeholder for an IPO that we estimate could raise $500 million

OneConnect was spun out of Chinese financial services conglomerate Ping An Insurance Group in 2017.

Revenue for the nine months ended September 30, 2019 grew 72% to $222 million (33% gross margin); operating loss widened to -$160 million.

The Shenzhen, China-based company was founded in 2015 and booked $295 million in sales for the 12 months ended September 30, 2019. It plans to list under the symbol OCFT. OneConnect Financial Technology filed confidentially on July 15, 2019. It had been on our Private Company Watchlist since June 2019. Morgan Stanley, Goldman Sachs (Asia), J.P. Morgan, PingAn Securities, BofA Securities, HSBC, CLSA Asia-Pacific Markets and KeyBanc Capital Markets are the joint bookrunners on the deal. No pricing terms were disclosed.

The article Ping An fintech spinoff OneConnect Financial Technology files for a $100 million US IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

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