Ping An Insurance’s OneConnect downsizes planned IPO by 28%

Ping An Insurance’s OneConnect downsizes planned IPO by 28%

OneConnect Financial Technology, a unit of China’s biggest insurer Ping An Insurance, downsized its upcoming IPO in the U.S. by 28%.

The firm set a price range of $9 to $10 per share, down from the previous $12 to $14 per share range. It also downsized the offering from 36 million American depositary shares (ADSs) to 26 million ADSs.

The price range values the firm at about $3.64 billion which was well below its $7.5 billion valuation it reached last year. The news deals yet another blow to one of its main investors, Japan’s Softbank which reported a massive loss of $6.5 billion in the third quarter this year.

It was its first quarterly loss in 14 years, as it had taken a nearly $4.6 billion hit from its investment in WeWork, according to the earnings report.

 “In the case of WeWork, I made a mistake,” chief executive of SoftBank Group Masayoshi Sontold investors at a news conference in Tokyo in November. “I won’t make any excuses. It was a very harsh lesson.”