Financial Giant Lufax Eyes $2.36B In US IPO

Chinese lending firm Lufax seeks as much as $2.36 billion from an initial public offering in the U.S.

Recently, the Chinese firm, which is one of China’s largest online wealth management platforms, said it planned to list on the New York Stock Exchange under the ticker “LU,” CNBC reported.

Lufax said it will issue 175 million American depositary shares (ADS), which will be priced at $11.50-$13.50 per share. That could leave Lufax’s offering valued at as much as $2.36 billion.

Chinese technology companies are reportedly seeking to take advantage of a resurgence in stock markets to go public, including Wall Street. The deal comes just before the U.S. presidential election, which analysts expect could prompt a renewed surge in market volatility in early November, according to a Reuters report.

For example, despite lingering tension between the U.S. and China as the COVID-19 pandemic rages on, electric car manufacturers Xpeng Motors and Li Auto both went public in the U.S. recently.

Lawmakers in Washington are pushing for increased scrutiny of Chinese firms through proposed legislation that threatens to delist some companies in the U.S., CNBC reported.

Lufax was expected to brief Asian investors on Friday and speak with prospective U.S. and European buyers on Monday.