Ping An Insurance-Backed Financial Tech Firm Lufax Raises $1.3 Billion


Ping An-backed Lufax has raised $1.33 billion in its latest funding round from a dozen investors, at a valuation below expectations of the financial technology company, people with direct knowledge of the matter told Reuters.

The fundraising values Lufax, set up in 2011 by top insurer Ping An Insurance Group Co. of China Ltd., at $38 billion prior to closing, the people said.
Lufax was targeting a $ 40 billion valuation when it began to fund its fund in June after delaying the plans of an IPO in Hong Kong.

Fund collection drew several groups of investors, people stated that confidential information should remain confidential. In a statement to Reuters, the Chinese private equity firm Primavera Capital was a leading investor.

The main investors included Qatar Investment Corporation, Hong Kong-based All-Stars Investment and Japanese financial institution SBI Holdings.

Sources also participated in financial institutions such as JP Morgan, Macquarie Group, UBS, UOB and Goldman Sachs’ private equity arm.

Other investors included the Hong Kong investment company LionRock Capital, London-based venture capital Hedosophia and Hermitage Capital, an investment company focused primarily on Russian markets.

If more investors participate in a later stage, the amount of fundraising may change.
Lufax, Qatar Investment, Macquarie, UBS and a SBI spokesman refused to comment. Hedystia and Hermitage could not be reached, and other investors did not respond to comment requests.

Lufax, officially Shanghai Lujiazui International Financial Asset Exchange, Ltd., Hong Kong, aims to finance growth while it is on hold due to changes in IPO’s online consumer loans – a basic business.

In a report by Refinitiv’s IFR last December, Lufax worked for an IPO in Hong Kong to raise five banks to $ 5 billion in the first half of 2018.

Resources organized the IPO as a regulator in a broader campaign to reduce financial risks for the fast growing consumer loans sector.

Within the scope of a proposal circulated in December, online micro-lenders will be banned and forbidden to lend to borrowers who do not have any source of income or have no specific purpose for funds.

An IPO plan will not be resumed to begin a person, Lufax’s work before public offering to try to remove consumer loans, he added.

Lufax reached $ 18.5 billion in 2016, a $ 1.2 billion increase in its latest round of financing. Existing investors are based on the Crunchbase data provider, BlackPine Private Equity Partners Fund LP, CDH Investments and Guotai Junan Securities Co.

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