Ping An's OneConnect picks banks for up to $1 bln Hong Kong IPO - sources

Ping An Healthcare and Technology Co

17/05/2019 11:55

* Goldman Sachs, JPMorgan and Morgan Stanley chosen-sources
    * OneConnect aims to raise up to $1 billion-sources
    * Could file as early as June and list in September-sources

    HONG KONG, May 17 (Reuters) - Ping An Insurance's OneConnect
financial technology unit has selected Goldman Sachs, JPMorgan
and Morgan Stanley to work on its Hong Kong initial public
offering (IPO) of up to $1 billion, people with direct knowledge
of the matter said.
    Ping An Insurance Group Co of China Ltd  601318.SS 
 2318.HK , China's biggest insurer by market value, is keen to
list its finance unit OneConnect as early as September, the
people said, speaking on condition of anonymity.
    OneConnect, which provides technology solutions to small and
medium-sized financial institutions, could file with the Hong
Kong stock exchange as soon as June, three of the people said.
    The sources declined to be identified as they were not
authorised to speak to media.
    Ping An, JPMorgan  JPM.N , Goldman Sachs  GS.N  and Morgan
Stanley  MS.N  declined to comment.
    OneConnect would join another unit of Ping An - Ping An Good
Doctor  1833.HK  - in listing in Hong Kong. 
    Formally known as Ping An Healthcare and Technology Co Ltd,
the healthcare platform operator raised $1.12 billion in May
2018. It has fallen 40.3 percent since going public. urn:newsml:reuters.com:*:nL3N1SB183
    OneConnect raised $750 million in its maiden funding round
in 2018, valuing it at $7.5 billion. It counts Japan's SoftBank
 9434.T  and Japanese financial firm SBI Group  8473.T   as some
of its main investors.
    Two of the sources said the company was targeting a
valuation of about $8 billion.
    OneConnect met with investors at the end of last month to
update them on its IPO plans, according to a person who attended
the meeting. However, many investors were concerned that an IPO
this year would not be able to get a strong valuation amid the
current challenging market and falling valuations in China's
"unicorn" space, the person said.
    Unicorns refer to startups with a value of least $1 billion.
    OneConnect clocked revenue of 1.56 billion yuan ($226
million) in 2018, an increase of 168% year-on-year, according to
a presentation given to investors and seen by Reuters.
    Chinese technology companies have lost their appeal for
investors the past year amid weak stock markets.  urn:newsml:reuters.com:*:nL3N1ZT2RH
    Many of Hong Kong's big tech listings last year - such as
smartphone maker Xiaomi  1810.HK  and online services provider
Meituan Dianping  3690.HK  - are trading below their offer
prices.
    Ride-hailing apps Uber Technologies  UBER.N  and Lyft
 LYFT.O  this year have also had weak listings in the United
States.  urn:newsml:reuters.com:*:nL2N22P15I
  ($1 = 6.9027 Chinese yuan)

 (Reporting by Clare Jim, Julie Zhu and Julia Fioretti; Editing
by Anshuman Daga)
 ((julia.fioretti@thomsonreuters.com; +852 2912 6686; Reuters
Messaging: julia.fioretti.thomsonreuters.com@reuters.net))