Lufax Holding, the operator of one of China’s biggest online wealth management platform, filed to go public in the US market, the latest Chinese company to shrug off concerns about worsening relations between the world’s two largest economies.

The Shanghai-based company is backed by China’s biggest insurer Ping An Insurance (Group) and follows in the footsteps of the insurer’s unit OneConnect Financial Technology, which raised US$312 million in its New York Stock Exchange (NYSE) debut in December.

Lufax said it plans to list its American depositary shares on the NYSE under the symbol, LU, it said in a regulatory filing early Thursday.

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Lufax did not disclose the size of its offering, using a common place holder figure of US$100 million in its filing with the US Securities and Exchange Commission. But sources have said the IPO could raise between US$2 billion and US$3 billion.

Lufax was valued at US$39.4 billion during its last-known funding round at the end of 2018. It previously considered a Hong Kong listing in 2018, but that never materialised. Details of potential US listing by Cayman Island-registered Lufax first emerged in July.

In Thursday’s filing, Lufax showed it had a net profit of 7.2 billion yuan (US$1.03 billion) for the six months to June 30. It reported a net profit of 7.5 billion yuan a year earlier.

The company said it plans to use the proceeds from the offering for general corporate purposes, including product development, sales and marketing activities and improving its technology infrastructure.

The company stopped facilitating new peer-to-peer loans in August last year. As of June 30, outstanding peer-to-peer loans as a percentage of total client assets had declined to 12.8 per cent.

Goldman Sachs,

  • Coatue Management is competing with some of the most powerful venture capital firms in Silicon Valley for a piece of the hottest startups, and is winning.
  • So far in 2020, the hedge fund wrote checks in 14 unicorn startups, or companies that are valued at more than $1 billion. They include Airtable, Rivian Automotive, Chime, and Impossible Foods.
  • In unicorn deals where it participated, Coatue led the round half of the time, according to a Business Insider review of PitchBook data. It indicates that startups see the value of working with the fund.
  • Coatue, run by Philippe Laffont and his brother Thomas Laffont, did not respond to a request for comment.
  • Visit Business Insider’s homepage for more stories.

A hedge fund is flying high over the startup world.

Coatue Management, a type of fund that raises outside capital to invest in a smorgasbord of asset types, has written checks into at least 14 unicorn startups so far this year, including breakouts like Chime, Airtable, and Rivian, according to data from PitchBook and media reports.

Its track record pits the hedge fund against some of the most well-endowed venture capital shops in Silicon Valley, who are all fighting for a stake in the hottest growth-stage startups before they go public or get acquired.

Traditional hedge funds tend to gravitate toward assets like stocks, bonds, currencies, and real estate and to allow investors to cash out periodically. But in recent years, hedge funds like Coatue and Tiger Global grew hot on startup investing because of their potential for large returns, even if those profits take longer to realize than other assets.

The ripple effects of the coronavirus pandemic have accelerated that strategy, Business Insider’s Callum Burroughs writes. The market swings and near-zero interest rates have made traditional investment strategies less appealing.