Ant Financial, the affiliate of Chinese e-commerce giant Alibaba, plans to file for dual listings in Hong Kong and Shanghai. Billionaire Jack Ma‘s Ant Group aims to raise US$30 billion in total at a valuation of about $225 billion.
The sources suggest that this is an effort to pull off the world’s largest initial public offering (IPO), as per the Business Times’ Report. The share sales could raise about US$30 billion in total if markets are favorable.
This Hangzhou headquartered company seeks to float its shares simultaneously on the Hong Kong stock exchange and the tech-focused Starboard in Shanghai. And this may happen in the coming October, sources suggest.
Notably, Ant Financial made around $1.3 billion in profit in the March quarter. Actually, Ant Group has morphed from a fintech platform to an online mall for everything from loans and travel services to food delivery.
But if this happens then Ant’s valuation (with ~ $225 billion) would be bigger than those of Goldman Sachs Group and Morgan Stanley combined.
On Friday, the China Securities Regulatory Commission received an application from Ant for an overseas listing, according to its website. However, no further details were given regarding this.
Why the Chinese Ant Financial IPO Plan is interesting;
Interestingly, Ant’s IPO will give another boost to Hong Kong Exchanges and Clearing. The Hong Kong Exchanges has already seen a renaissance of Chinese tech listings. This is because the commission has relaxed rules in the wake of losing China’s biggest tech firms to New York.
Meantime, several reports claim that the US stock exchanges may set new rules to trigger the delisting of Chinese companies. Since after this, Chinese firms must grant American regulators access to their audit work papers. Only then they can be allowed to trade on a US exchange.
Meantime stay with us for more updates on Ant Financial IPO