Chinese Insurance Tycoon Ping An’s Blockchain Arm Sets Terms for $468M IPO

The blockchain and AI subsidiary of China’s major insurance agency Ping An Insurance, OneConnect Financial Technology, has set the terms for its recently revealed initial public offering (IPO).

As per an updated F-1 filing with the U.S. Securities and Exchange Commission (SEC) on December 2, the company plans to raise between $432 million and $504 million by means of the offering of 36 million American depositary shares (ADSs) at a cost of somewhere in the range of $12 and $14. Each ADS is equivalent to three ordinary shares.

The target raise is a lot higher than when the company’s prospectus was initially filed in mid-November when an amount of $100 million was suggested.

OneConnect intends to list on the NYSE with the ticker “OCFT” on December 12, as indicated by Nasdaq. The IPO’s underwriters include Goldman Sachs, Morgan Stanley, HSBC, JPMorgan, and Bank of America.

The filing values the firm at roughly $4.7–4.9 billion, down from a $7.5 billion valuation during its last fundraise—a round backed by Japanese private equity tycoon SoftBank.

OneConnect announced revenue of $222 million and an operating loss of $160 million for the initial nine months of this year, as indicated by Nasdaq.

Reuters revealed in September that the company had been trying to go public in Hong Kong with a $1 billion objective, but moved to the U.S. wanting to raise a higher sum. It currently appears that OneConnect has settled for half that sum if the report was right.