China-based fintech Lufax has raised around $2.36 billion in its initial public offering in the US, making it the fifth-biggest in the year. After the IPO, Chinese insurer Ping AN will own around 39 percent of Lufax.
Last month, Lufax said it will issue 175,000,000 American depositary shares (ADS) which will be priced between $11.50 and $13.50 per share. The company also revealed that it will list its shares on the New York Stock Exchange.
The stock opened at $11.60 and rose 5 percent to a high of $13.64 before retreating. Its shares fell 14 percent on Friday. Lufax’s debut in the US comes at a time when there is a growing tension between the US and China. Earlier this year, Nasdaq also unveiled new restrictions on initial public offerings, a move that makes it harder for some Chinese companies to debut on its stock exchange.
Last month, Alibaba-owned fintech company Ant Group’s IPO received a massive $3 trillion worth of bids from individual investors as the company listed its shares on the Hong Kong and Shanghai stock exchange.
Ant Group raised around $34 billion when its shares began trading in Hong Kong and Shanghai, making it the biggest IPO in history overtaking Saudi Aramco’s IPO last year. Saudi Aramco raised $29.4 billion in its IPO on the Saudi stock exchange last year, which broke the IPO record set by Alibaba. The IPO is likely to value Ant Group at $313 billion making it the fourth largest fintech in the world.