On Dec. 13, Chinese "unicorn" (a term referring to a company with private market valuations over $1 billion) OneConnect Financial Technology will be selling American depositary shares (ADS) on the New York Stock Exchange in an initial public offering. OneConnect (which will trade under the ticker symbol OCFT) is the financial cloud technology platform developed internally by Chinese insurance giant Ping An (OTC: PNGAY).
In the offering, OneConnect will be selling 36 million ADSes, each equaling three shares of the company, for a price between $12 and $14, which will raise up to between $438.2 million and $504.6 million. The share sale will equate to about 9.7% of shares outstanding, creating a valuation for the company of around $4.86 billion at the midpoint.
This valuation is far below the $8 billion valuation the company was seeking earlier this year. In fact, the new valuation will be a huge 42% decline from a 2018 Softbank-led $750-million funding round that valued the company at $7.5 billion, meaning this will be the rare and dreaded "down round" IPO. OneConnect had initially sought to go public on the Hong Kong exchange, but in light of the political turmoil there, it turned to a U.S. exchange instead.
Source Fool.com