Chinese online wealth management company Shanghai Lujiazui International Financial Asset Exchange Co. Ltd., or Lufax, is aiming to raise up to US$2 billion in new funding, appraising the company at US$40 billion, Reuters reported June 14, citing IFR.
Lufax is said to be working with advisers to raise equity of at least US$1 billion, sources familiar with the deal told the publication. However, they did not disclose the potential investors or the time frame.
The move comes as the wealth manager, established in 2011 by Ping An Insurance (Group) Co. of China Ltd., opted to delay its proposed IPO in Hong Kong, according to the sources. Lufax deferred its listing after authorities sought to regulate the growing online consumer lending sector under a wider campaign to curb financial risks, the sources added.
As a result of the delay, some of the company's existing shareholders are planning to sell Lufax shares worth about US$30 million, at a valuation above US$30 billion, one of the sources said.
Lufax declined to comment, according to the news outlet.
The wealth manager last held a funding round in 2016, in which it raised US$1.20 billion.
Citic Securities, Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley were appointed joint sponsors for the IPO, IFR reported in December 2017.