4 charts, Member Exclusive

4 charts on the Lufax IPO

  • Chinese digital lender and wealth management firm Lufax is preparing to float shares in the U.S.
  • The company continues to grow and innovate as financial regulation continues to change.
close

Email a Friend

4 charts on the Lufax IPO

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

lufax's platform

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.

SPONSORED

 

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.

Tearsheet Outlier information and signup 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

0 comments on “4 charts on the Lufax IPO”

Data Snacks, Member Exclusive

Data snack: A breakdown of North American e-commerce payments projections

  • Digital payments, mobile wallets, and BNPL services grew in 2020 and will continue to grow by 2024.
  • Bank transfers, charge cards and COD expected to decline further by 2024.
Shehzil Zahid | June 16, 2021
Member Exclusive

BankProv taps into the crypto market with Ethereum-backed loans

  • BankProv is financing Ethereum-backed loans through a collaboration with crypto custody bank Anchorage Digital.
  • Institutional investors can now get USD on credit without liquidating their ETH holdings.
Ismail Umar | June 15, 2021
Member Exclusive

Cheat Sheet: Will cryptocurrencies ever achieve mainstream adoption?

  • The crypto market crashed a few weeks ago, and has not shown any real signs of recovery yet.
  • What does this mean for the future of the industry, and what are the challenges toward mainstream adoption?
Ismail Umar | June 10, 2021
Member Exclusive

Millennials’ financial habits diverge from previous generations, according to research by BofA

  • A significant percentage of millennials seem to be less about paychecks and more about ethics.
  • Covid has shifted the way millennials think about spending and saving.
Rivka Abramson | June 09, 2021
Member Exclusive, New banks

What’s happening in challenger banking, June 2021

  • Tearsheet publishes Challengers, its bi-weekly newsletter on what's happening in digital banking.
  • Here are the the ins and outs of how digital is impacting the business of banking as of June 2021.
Tearsheet Editors | June 03, 2021
More Articles