Mainland online lender Lufax guns for US$2b fresh funding amidst IPO delay

It was originally planning to debut at the first half of 2018.

Reuters reports that online finance marketplace Lufax is reportedly aiming to raise US$2b in fresh funding as it shifts into growth mode following a delayed Hong Kong listing.

Also read: IPOs surge 33% to US$725m in H1 2018

The funding round, which will value the online wealth management platform at US$40b, comes as the firm’s IPO has been put on hold due to tightening regulation in online consumer lending.

Lufax has earlier hired five banks to work on its public debut to raise US$5b in the first half of the year.

However, Beijing’s widespread crackdown to rein in risk in the financial services sector has prompted Lufax to postpone its IPO following the circulation of a proposal in December stipulating that online micro-lenders need to be licensed.

It also banned lending to borrowers with no sources of income and no specific purpose for the future.

Here’s more from Reuters: