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Blockchain and AI Subsidiary of China’s Insurance Giant in $500 Million IPO

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OneConnect Financial Technology, the blockchain and AI subsidiary of China’s top insurance company Ping An Insurance, has set the terms for its previously announced initial public offering (IPO).

According to CrunchBase, OneConnect was founded in 2015 and has attracted a single funding round of $650 million from Softbank Vision Fund early last year,

The firm aims to raise between $432 million and $504 million via the offering of 36 million American depositary shares (ADSs) at a price of between $12 and $14. Each ADS represents three ordinary shares. The target raise is much higher than when the firm’s prospectus was first filed in mid-November, when a figure of $100 million was proposed.

The IPO is said to have been underwritten by several banks, including Morgan Stanley, Goldman Sachs (Asia), JP Morgan, Ping An Securities, BofA Securities and HSBC. According to reports, OneConnect’s shares would start trading on December 13.

The filing values the company at around $4.7–4.9 billion, down from a $7.5 billion valuation at the time of its last fundraise by Japanese private equity giant SoftBank.

OneConnect was initially eyeing a Hong Kong IPO, but a combination of a higher anticipated price and unstable political scenario made OneConnect change the listing venue to New York.

A few months ago, OneConnect and parent company Ping An published a whitepaper on blockchain trade, stressing the need for interoperable blockchains. The company recently launched the SME-focused blockchain lending platform SeekCap that it developed with UBX, unit of UnionBank of the Philippines.

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