OneConnect Financial Technology, a Ping An-backed provider of operations management tools for financial firms, announced terms for its US IPO on Monday.
The Shenzhen, China-based company plans to raise $468 million by offering 36 million ADSs at a price range of $12 to $14. At the midpoint of the proposed range, OneConnect Financial Technology would command a market value of $4.9 billion and an enterprise value of $4.7 billion. This implies a significant markdown from its last funding round that raised $750 million at a $7.5 billion valuation, led by SoftBank at $22.50 per ADS.
Revenue for the nine months ended September 30, 2019 grew 72% to $222 million (33% gross margin); operating loss widened to -$160 million.
OneConnect Financial Technology was founded in 2015 and booked $294 million in revenue for the 12 months ended September 30, 2019. It plans to list on the NYSE under the symbol OCFT. It had been on our Private Company Watchlist since June 2019. Morgan Stanley, Goldman Sachs (Asia), J.P. Morgan, PingAn Securities, BofA Securities, and HSBC are the joint bookrunners on the deal. It is expected to price on Thursday, December 12, 2019.
