In the first half of this year, dada, ideal automobile, Xiaopeng automobile and other domestic companies have successively listed in the United States. At present, lufax holds the highest amount of financing, which is expected to become the largest China capital stock IPO in the United States this year, and may be the largest financial technology IPO in the United States so far.
On October 8, Beijing time, lufax holdings formally submitted the listing documents to the US Securities and Exchange Commission (SEC), and will seek listing on the New York Stock Exchange with the stock code Lu. The Underwriters include Goldman Sachs, Bank of America Securities, UBS, HSBC, Ping An Securities (Hong Kong).
Before the IPO, lufax holdings had completed three rounds of financing, with a total scale of more than $3.1 billion. Specifically, the company completed a round of financing totaling US $777 million in March 2015 and January 2016; completed US $924 million round B financing in January 2016, with the investors including Bank of China group, Guotai Junan Securities, Minsheng Bank, etc.; in November 2018 and December 2019, the company completed a total of US $1.411 billion in round C financing, with investors including Chunhua capital, Qatar Investment Authority and SBI Holding, JP Morgan, UBS, Goldman Sachs and other star investment institutions.
Wind data shows that from January to September this year, the number of China capital stocks listed in the United States reached 30, which has exceeded the number of 25 in the same period of 2019, and reached the highest number of companies listed in the United States in the past 10 years.
Compared with the China capital stock company listed in the US stock market this year, lufax Holdings has advantages in terms of revenue and business scale. According to the data, in the first half of 2020, lufax holdings realized 25.7 billion yuan of revenue and 7.272 billion yuan of net profit. From 2017 to 2019, the total income of lufax holdings increased from 27.8 billion yuan to 47.8 billion yuan, with a compound growth rate of 31%; the net profit increased from 6 billion yuan to 13.3 billion yuan, with a compound growth rate of 48.6%.
How does it affect Ping Ans stock price
If lufax goes public smoothly, it will become another Unicorn listed company hatched by Ping An group after ping an good doctor and financial one account.
Industry insiders believe that the listing of lufax will be beneficial to Chinas Ping An stock price.
Dai Zhifeng and Lu Yunting, analysts of Zhongtai securities, said that the listing of lufax had a greater effect on the stock price of Ping An of China. If lufax can be listed successfully, its valuation method will be converted from net assets to market value method in Ping An Groups valuation system. Considering the business volume, business growth rate and actual scale net profit of lufax in the first half of 2020, we assume that the net profit attributable to the parent company in 2020 will be 15 billion yuan, and the IPO valuation will be 25 times PE. Then, the 42.3% shareholding ratio of Ping An Group will correspond to the market value of 158.6 billion yuan, which will increase significantly compared with the corresponding net assets of 23.4 billion yuan.
Source: Zhongtai securities
Zhongtai securities uses the segment valuation method to measure Ping Ans share price, of which life insurance adopts the embedded value valuation method; the bank adopts the market value method; the property insurance, securities and trust business benchmarking industry adopts the price to book ratio valuation method; the four listed technology companies, including auto home, Zhongan online, Pingan good doctor and finance Yizhang Tong, adopt the market value method; Lufeng adopts the scenario estimation method In other businesses, the reasonable share price of Ping An is about 96.06 yuan.
According to Fortune Securities, the impact of lufaxs listing on Chinas Ping An is certainly good, but it will not be too big in fact, because before the listing, Ping An of China only owned 40.6% of the shares of lufax, and the impact of lufaxs valuation on Chinas Ping An is not expected to exceed 10 yuan per share.
Mr. Zhongzheng noted that after lufax holdings announced its listing in the United States on October 8, the share price of Ping An of China rose from 77.27 yuan / share opened on October 9 to 82.10 yuan / share closed on October 22, with a cumulative increase of 7.66%.
All three financial technology giants enter the listing process
On October 16, the Shanghai Stock Exchange disclosed the reply of Jingdong Digital Technology Co., Ltd. to the inquiry letter of the first round of listing on the science and technology innovation board. At present, the data division of Jingdong is in the state of inquired.
On the evening of October 21, the China Securities Regulatory Commission (CSRC) announced that it had agreed to register the initial public offering of shares on the science and Technology Innovation Board of ant group. On October 22, the Shanghai Stock Exchange announced that the listing of ant group on the science and technology innovation board took effect. According to the announcement, ant groups initial inquiry time for the issuance of science and technology innovation board is October 23, and the application time is October 29. It will apply for listing on the science and technology innovation board as soon as possible after the completion of the stock issuance.
Some market participants believe that, from the current progress point of view, lufax holdings may be the first to complete the listing.
In the prospectus previously disclosed, lufax defined itself as Chinas leading technology driven personal financial service platform.
Our target market is a customer group that traditional financial institutions and pure online technology financial platforms dont serve, said lufax holdings. Traditional financial institutions, due to the lack of digital service capacity and data, can not cover the huge market demand; financial technology companies promote financial services with technology, but generally lack of relevant financial data and perfect financial professional service ability, unable to provide reasonable risk pricing for borrowers. In the future, Lujin will further utilize the most advanced technology to optimize the customer experience and reduce the operation and customer acquisition costs. Technology infrastructure construction, technology research and development, technology investment and acquisition and other investment in science and technology have become the main direction of this fund-raising. Financial technology head companies have landed in the capital market one after another, which will form a demonstration effect on the overall development of the industry. Zhao ran, chief analyst of non bank finance of China CITIC, once said that the technology + finance mode is scarce in the current market, and the landing of head companies with high performance certainty will bring more investment opportunities to the market. Source: China Securities Journal Editor in charge: Yang Bin_ NF4368
In the future, Lujin will further utilize the most advanced technology to optimize the customer experience and reduce the operation and customer acquisition costs. Technology infrastructure construction, technology research and development, technology investment and acquisition and other investment in science and technology have become the main direction of this fund-raising.
Financial technology head companies have landed in the capital market one after another, which will form a demonstration effect on the overall development of the industry. Zhao ran, chief analyst of non bank finance of China CITIC, once said that the technology + finance mode is scarce in the current market, and the landing of head companies with high performance certainty will bring more investment opportunities to the market.