Ant Group could raise up to $24b in Shanghai IPO leg

Daniel Fowler
October 26, 2020

Jack Ma, founder of Alibaba to which Ant Group is affiliated, said on Saturday that the price is likely to be the "world's largest", and it's the first time the pricing of a big tech company has been decided outside of NY.

Ant aims to split the share sale evenly between Hong Kong and Shanghai, selling up to 11% of its enlarged share capital. Addressing the Bund Summit in Shanghai on Saturday, Ma said that the dual listing will be the world's biggest in human history ever, CGTN reported.

Recent filings revealed profits were up more than 70pc year-on-year in the third quarter, and Ant recorded revenues of around 118.2 billion yuan for the first nine months of 2020. If the company exercises its greenshoe option, which would allow it to sell more shares than initially planned, it could raise another $5.17 billion, taking its valuation to about $320 billion.

Ant Group Co set the price of its record initial public offering in Shanghai on Friday evening, its billionaire founder Jack Ma said, without disclosing the price.

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The price for the Hong Kong tranche is at HK$80 ($10.32) per share. The issuing of 1.67 billion shares will raise 114.94 billion yuan or $17.23 billion, according to the exchange rate listed in the official filings. Its shares are likely to start trading a few days after the November 3 US presidential election, sources have said.

Alibaba owns a 33% stake in Ant Group.

Among them are Zhejiang Tmall Technology, a unit of Alibaba, which has committed to purchase 44% of the Shanghai float, according to Ant's updated prospectus. Ho, who invested $400 million in Ant two years ago, added that he's trying to secure a bigger allocation of the Hong Kong shares and that being able to invest in Ant "is priceless".

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