Lufax Holding Ltd, one of China’s largest online wealth management platforms, has filed for an initial public offering (IPO) in Hong Kong.
The IPO will be conducted via “listing by introduction”which enables the firm to list shares that are in issue on another exchange. Therefore, the Hong Kong IPO will not offer any sale of new shares of other securities of the firm, according to its filing with the Hong Kong Stock Exchange.
Listed on the New York Stock Exchange in October 2020, the firm said in the filing that dual listing in both New York and Hong Kong allows the firm to tap different equity markets.
“In particular, dual primary listing status in both Hong Kong and the NYSE enables us to benefit from our exposure to a wider range of private and institutional investors. Our directors believe that a listing in Hong Kong is in line with our focus on our operations in the PRC, which is important for our growth and long-term strategic development,” the firm said in the filing.
Lufax, backed by financial giant Ping An Insurance Group, left the firm’s core peer-to-peer lending business in 2019. The firm has since enabled both borrowers and institutional partners through its core retail credit and enablement business model. It also makes consumer finance loans through its subsidiary as well as referring borrowers to banks through a product known as Lujintong.
Lufax’s net profit dropped by 67.1% to $190 million in Q3 2022 from the same period of 2021, in which the firm attributed to the impact of COVID-19 that has left “greater volatility” in the firm’s financial performance in the second half of 2022, per the filing.