Chinese tech firm Lufax started trading on the New York Stock Exchange on Friday, raising $2.36 billion as the company lays the groundwork for international expansion, according to CNBC. The company’s stock fell as much as 14.3% on debut but recovered some losses, closing at $12.85 per share, about 4.8% below the $13.50 offer.
- The overseas expansion allows the company to partner with local brands but with Lufax technology behind the product.
- NYSE listing offers Lufax a great place to expand globally since it gives the company access to the right investors and analyst coverage.
- Lufax has not considered secondary listing in Hong Kong or Shanghai but may consider it, with the regulatory framework having significantly improved there.
- Lufax also considers countries in Southeast Asia to be “a great long-term opportunity”-Greg Gibb, CEO.
- Lufax’s NYSE listing comes amidst tensions between the U.S. and China, with Washington pushing greater scrutiny of Chinese entities and threatening to delist some firms.
Lufax stock is gaining today. LU: NYSE is up on premarket 6.38%