As a young industry still experiencing high levels of growth, Fintech investment has thus far tended to be limited to private markets. However, as the industry matures and startups become scale ups many are predicting that Fintech IPOs should be on the increase in the next few years.
Potentially the first to break the dam is Lufax, a p2p lender and wealth manager based in Hong Kong. According to sources close to the company and a number of media reports, the firm is eyeing a possible float in April 2018.
The reports, principally in the South China Morning Post, state that Citigroup, JP Morgan, Citic Securities, Morgan Stanley and Goldman Sachs could all act as underwriters on the deal which could value the company at an impressive $60bn. This figure is more than triple the valuation ($18.5bn) placed on the company in its last private funding round in 2016.
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Currently owned by insurance company Ping An, Lufax would apparently look to sell about 15 per cent of its shares and raise $9bn in doing so. The company would also follow other Chinese firms listing in Hong Kong, including Tencent and China Construction Bank.