China’s Lufax to raise $2 billion amid IPO delay, sources say

HONG KONG: China’s Lufax aims to raise up to $2 billion in fresh funding, valuing one of the country’s largest online wealth management platforms at $40 billion, as it opts for private investment ahead of a delayed listing, said people familiar with the deal.
Lufax, set up in 2011 by top insurer Ping An Insurance Group Co of China Ltd, is working with advisers to raise equity of at least $1 billion, said the people, who declined to be identified as fundraising plans are not public. They did not disclose potential investors or time frame.
The firm, formally Shanghai Lujiazui International Financial Asset Exchange Co Ltd, seeks to fund growth while its initial public offering (IPO) is on hold due to changing regulation in consumer lending, a core business, the people said.
Lufax hired five banks to work on an IPO in Hong Kong to raise up to $5 billion in the first half of 2018, a publication IFR reported in December. — Reuters