OneConnect, another fintech subsidiary of Chinese insurance giant Ping An, planned to list on Hong Kong Securities Exchange through the introductory approach
The US listed fintech company OneConnect (OCFT: NYSE) announced its listing by way of introduction in Hong Kong on 28 February; no marketing arrangements are required. Goldman Sachs and HSBC are the joint sponsors.
OneConnect was successfully listed under the ticker symbol OCFT on the New York Stock Exchange in 2019. If given the greenlight this time, OneConnect will achieve a dual listing on both the New York and Hong Kong exchanges.
The listing by introduction is an application for exiting shares. Since shares have already been in issuance, it follows that no new shares will be issued and no additional funds will be raised. The procedures for vetting and approving a new listing by introduction are identical to those for IPOs.
For a company whose shares have already been listed on another stock exchange, if its shares are to be listed on the Hong Kong by introduction, they must be transferred first from the share register of the market where they are listed (usually overseas) to the Hong Kong share register, according to HKEXnews.
OneConnect’s shares plummeted in 2021, and even after the new year began, its stock price kept sinking. As of press time on March 1, OneConnect was priced at USD 1.58, down 84.2% from the issue price of USD 10.
OneConnect released its 2021 Financial Report on February 25. It showed that the company achieved an annual revenue of CNY 4.13 billion, an increase of 25% year on year, and narrowed its operating loss by 4.4% to CNY 1.405 billion. The net loss attributable to shareholders also diminished to CNY 1.282 billion.
Previously, the company announced that its board of directors has approved a share repurchase program in which the company may purchase its own American depositary shares (“ADSs”) with an aggregate amount of up to 2% of the total outstanding ordinary shares from February 24, 2022 to September 30, 2022.
“The decision to buy back OneConnect’s ADSs reflects the Board’s firm belief that our ADSs are presently undervalued in the marketplace and our confidence in the Company’s fundamentals, business outlook and long-term strategies,” said Mr. Wangchun Ye, OneConnect’s chairman.
OneConnect is a technology-as-a-service (TaaS) platform which has been committed to delivering technology applications and technology-enabled business solutions to financial institutions. It has also expanded into areas such as government, regtech and enterprise services to support the digital transformation of the financial services ecosystem.
Competition in the fintech market is fierce, with several tech giants—like Ant Group and 360 DigiTech (QFIN:NASDAQ)—jostling for a piece of the pie. Other niche players include Lufax (LU:NYSE), JD Technology and Lexin (LX:NASDAQ).