Ping An’s OneConnect to launch $500 million U.S. IPO in rare down round: sources

HONG KONG, Dec 2 (Reuters) – Ping An Insurance’s OneConnect Financial Technology plans to launch a U.S. initial public offering (IPO) for about $500 million on Tuesday, people with knowledge of the matter said, reducing both its target offering size and valuation in a rare “down round”.

The unit of China’s biggest insurer by market value, Ping An Insurance Group Co of China Ltd, is looking for a valuation of between $4.5 billion and $5.5 billion in its long-awaited public offering, said the people.

However, that is well below the company’s $7.5 billion valuation last year when it raised $750 million in its maiden funding round, potentially making for a rare down round — a fall in valuation following a new investment — of a tech-related firm.

Ping An didn’t immediately respond to a request for comment. The people declined to be identified as they were not authorised to speak to media.