OneConnect’s Pursuit of IPO

It’s not every day that a company decides to take a huge leap into the public market, but that’s exactly what OneConnect is doing. Backed by the fintech strength of China’s Ping An, this company has filed for an Initial Public Offering (IPO) with the SEC. Aiming to raise $100 million, OneConnect is gearing up to make its debut on the Nasdaq Global Market or possibly the New York Stock Exchange, assuming all goes according to plan.

Funding Journey: From Hong Kong to the U.S.

OneConnect once had its sights set on a Hong Kong IPO, projecting a target of $1 billion with a valuation tipping at $8 billion. But as we well know, the road to public offerings can be twisty, and now it’s making waves in the U.S. After raising $650 million in their Series A funding round at a pre-money valuation of $6.8 billion, the company is ready to take on Wall Street.

Impressive Clientele and Technical Capabilities

OneConnect is not just a fintech player; it’s a service provider for over 200 banks and an impressive 200,000 enterprises. It launched its blockchain platform in 2018 and boasts solutions across various sectors like finance, healthcare, and smart city infrastructure. Talk about versatility! With the ability to manage an astonishing 50,000 transactions per second, and a latency of less than half a second, they certainly know how to manage speed.

Financials and the Quest for Profitability

But all that glitters isn’t gold, as OneConnect recently reported a net loss of $147 million with revenues hitting $218 million for the first nine months of this year. This marks a steeper loss when compared to last year’s figures. However, every cloud has a silver lining, and with revenues rising, analysts are curious to see if this fintech will turn its fortunes around post-IPO.

The Broader IPO Climate

And they’re not alone in this IPO chase! Just recently, Canaan Creative, a titan in Bitcoin mining, announced its own IPO ambitions, with plans to raise an equal $100 million. Meanwhile, Bitmain, a major player in the crypto hardware market, also pivoted its strategy from Hong Kong to the U.S. With fintech and crypto sectors both pushing for IPOs, we’re sure in for an eventful season ahead.