Lufax's IPO plan shows that the Chinese fintech startup isn't fazed by U.S. and China tensions, which have impacted TikTok and Huawei. Amid the tensions, many Chinese companies have listed their stocks closer to home. For U.S. investors, the Lufax IPO may present a rare opportunity. When is the Lufax IPO date? Should you invest in Lufax stock?
When is the Lufax IPO date?
Lufax has tapped investment banks Goldman Sachs, Morgan Stanley, BofA Securities, UBS Investment Bank, and HSBC to work on its public listing. When is the Lufax IPO date? Although Lufax submitted its public listing documents to the SEC on Oct. 7, it hasn’t set the IPO date.
Lufax is expected to list its stock in October to avoid being caught up in market volatility that may arise from the presidential election in November. The Lufax IPO could raise as much as $3.0 billion and value the startup at about $38 billion.
Should you buy the Lufax stock IPO?
Lufax stock may appeal to investors seeking exposure to China’s booming fintech sector. Since Alibaba’s Ant Group listed its stock on Chinese exchanges, Lufax may be a great option for investors who can’t get access to Ant Group stock easily.
Investors may also like that Lufax operates in a segment with unmet demand, which indicates strong growth prospects for the company. Lufax targets China’s fast-growing affluent population with its credit and wealth management products. The company uses blockchain technology in its operations, which makes it a candidate for investors seeking out blockchain stocks.
Not many startups in the 2020 tech IPO party are profitable. Therefore, Lufax stands out among a handful of profitable startups. Lufax generated $3.6 billion in revenue and made more than a $1.0 billion profit in the first half of 2020.
Where to buy the Lufax stock IPO
Lufax stock will trade on the NYSE under the ticker symbol "UL." Since Lufax is currently a private company, investing in it directly right now may require you to be an accredited investor. Any interested investors, regardless of their net worth, will be able to access Lufax stock after it becomes public. With Lufax shooting for an IPO date by the end of October, you won't have to wait long to get your hands on the stock.
After Lufax stock becomes public, investors will be able to buy it through brokers like Charles Schwab, Fidelity, Vanguard, Webull, Tastyworks, SoFi Invest, Cash App, and Robinhood. Most of the brokers allow you to start investing with as little as $1 thanks to the ability to purchase fractional shares.
How to buy the Lufax stock IPO on Robinhood
Robinhood’s pre-IPO stock purchase tool may be ideal for investors looking to get into Lufax stock early. To be able to buy Lufax stock on Robinhood, you will need to open a Robinhood trading account if you don’t have one already. You can choose from the three account types that Robinhood offers.