As China’s Ant Group prepares for the largest IPO on record, another Chinese financial technology firm is going public. And unlike Ant’s decision to publicly sell shares in Hong Kong and Shanghai, online lender Lufax is prepping its IPO for U.S. markets.
Lufax plans to raise over $2 billion in the U.S. at a time when tensions are high between the US and China. In August, U.S. regulators threatened to block Chinese companies from listing stateside.
Lufax’s roots are in peer to peer lending. As an early leader in the space, the company has evolved its lending and wealth management offerings as Chinese regulators cracked down on the sector. For the six months ended June 30, Lufax had a net profit of more than $1 billion on total income of $3.64 billion, according to its IPO prospectus.
Lufax’s business model
The online lender and wealth manager employs what it calls a “hub and spoke” business model matching the right financial products to its users. Its retail credit facilitation hub has connected 13.4 million borrowers with more than 50 banks, trusts and insurers as spokes on the platform.
Lufax offers small business owners access to large-ticket-size funding, while enabling financial institution partners to tap into a fast-growing, high-quality small business segment. To acquire high quality borrowers, the company integrates its direct sales team with a network of channel partners, including the Ping An ecosystem.
This content is available exclusively to Tearsheet Outlier members.
Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account