China's Largest Insurer Blockchain And AI Subsidiary Slashes IPO Expectations — Again

In an updated filing with the U.S. Securities and Exchange Commission on Wednesday, fintech company OneConnect Financial Technology Ltd changed the amount it is expecting to raise as part of its initial public offering — for the second time in December.

Up, Down, Up, And Down Again

The subsidiary of China’s largest insurer Ping An Insurance (Group) Co of China Ltd PNGAY, said it is now expecting to sell up to 26 million American depositary shares priced between $9 to $10.

This puts OneConnect’s total amount raised in the IPO between $234 million to $260 million, if it manages to sell all the shares.

In its earlier updated filing on December 5, OneConnect said that it was expecting to raise between $432 million and $504 million in the IPO, selling 36 million shares priced between $12 and $14.

The company, which has filed the second largest number of blockchain patents in China, put its expectations at $100 million in the original IPO filing in November.

The SoftBank Group Corporation SFTBY-backed OneConnect was looking to raise as much as $1 billion in August, according to a Reuters report.

What’s Next

OneConnect could raise an additional $35.1to $36 million if its underwriters, which include banking giants like Morgan Stanley MS, Goldman Sachs Group Inc GS, JPMorgan Chase & Co JPM, and HSBC Holdings plc HSBC, exercise the overallotment option to sell an additional 3.9 million shares.

The fintech company will list its shares on the New York Stock Exchange with the ticker “OCFT.”