Ant Group gets Hong Kong’s ‘green light’ for ‘massive’ $35 billion dual listing
Ant Group Co Ltd has received approval from the Chinese securities regulator for the Hong Kong stage of the dual listing, worth approximately $ 35 billion, sources familiar with the matter told Reuters..
Chinese financial technology company plans to simultaneously list in Hong Kong and Shanghai STAR in what could be the world’s largest initial public offering (IPO), surpassing Saudi Aramco’s record of $ 29.4 billion set in December.
The company plans to request permission for listing from the Hong Kong stock exchange on Monday, one of the sources said on condition of anonymity, as the issue has not yet been made public..
The fintech giant, 33% owned by Alibaba and controlled by a billionaire Jack Ma, declined to comment.
The Refinitiv IFR said it had received approval from the China Securities Regulatory Commission (CSRC) earlier Monday. It also says CSRC will approve Ant’s IPO on Star Market this week.
Ant plans to start a short pre-sale period this week ahead of order books open next week, IFR reports, adding that Ant shares are likely to start trading. «in a few days» after the US presidential election on November 3.
Ant originally planned to meet with the Hong Kong exchange on September 24 and hold an IPO after the week-long National Day of China ending October 8..
Sources told Reuters last week that CSRC is investigating potential conflicts of interest in the planned listing, delaying obtaining regulatory approval..
Ant intends to sell 10% to 15% of its increased share capital in an IPO, dividing that amount equally between Hong Kong and Shanghai. The company expects strong demand from institutional investors.
One analyst previously told CNBC that Ant’s valuation could exceed $ 200 billion.
The Chinese company controls the hugely popular mobile payment app Alipay in China, which has over 700 million monthly active users. The company also offers a variety of other financial products ranging from insurance to wealth management. But most of her business model is selling fintech products and getting paid for tech services..
Ant Group’s IPO process is moving forward despite reports that the US is trying to blacklist the company called the Entity List, which experts say will be «largely symbolic».