In another setback for Softbank’s giant Vision Fund, OneConnect has slashed its expected valuation by about half before a planned stock market debut in the U.S.
OneConnect, the financial technology arm of Shenzhen-based Ping An, said it would seek to raise $299 million at a valuation of $3.6 billion at the top end of an indicated range, according to a stock exchange filing on Thursday.
The seller of technology platforms to financial companies raised $650m at a $7.5 billion valuation last year, according to filings by Ping An. Bankers at one time thought OneConnect could raise as much as $2 billion in a public listing, «Financial Times»(behind paywall) reported. The company initially planned to list in Hong Kong but rerouted to New York.
Public Markets Becoming Skeptical?
OneConnect joins a long list of loss-making companies facing increasing skepticism from the public markets. Ucommune, China's largest co-working company, said it would also push ahead with a U.S. listing despite international investment banks abandoning the deal. The company, which posted a net loss of more than $80m for the nine months to September 30, filed for an initial public offering on the New York Stock Exchange on Wednesday.
Citigroup, Credit Suisse and Bank of America were among the banks working to take Ucommune public. According to the latest filing, Hong Kong’s Haitong International and China Renaissance are the only sponsors. Wall Street and European banks steered away from the deal after disagreeing with Ucommune on the deal’s timeline and value, according to two people with knowledge of the matter. «The whole [co-working] sector is a little scarred from WeWork,» said one person.
