Ping An unit OneConnect cuts IPO by 28%, lowers target valuation

December 12, 2019 09:35
Ping An's financial technology unit has scaled down its US IPO and settled for a lower valuations. Photo: Bloomberg

Ping An Insurance’s fintech unit OneConnect Financial Technology on Wednesday downsized its planned US initial public offering by 28 percent and lowered its target valuation, Reuters reports.

OneConnect set a US$9-10 price range for its offering, down from the US$12-14 per share range it had set earlier, according to the report.

The company also downsized the offering from 36 million American depositary shares (ADS) to 26 million ADS.

The upper end of the price range values OneConnect at about US$3.64 billion.

That is well below its US$7.5 billion valuation last year when it raised US750 million in its maiden funding round from investors including Japan’s SoftBank and Japanese financial firm SBI Group.

The scaled-down IPO marks yet another blow to SoftBank, which is still reeling from the fallout of US office sharing startup's WeWork’s failed listing, Reuters noted.

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