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Ant Group's Hong Kong IPO is approved by China Securities Regulatory Commission
Ant Group's Hong Kong IPO is approved by China Securities Regulatory Commission

Ant Group’s Hong Kong IPO is approved by China Securities Regulatory Commission

According to IFR news, Ant Group’s Hong Kong IPO was approved by the China Securities Regulatory Commission and a listing hearing was held today.

Earlier on October 17, according to multiple media reports, Ant Group was stepping up preparations for listing in Hong Kong and Shanghai. At the same time, the source said that the British Barclays Bank, along with Bank of China International and ICBC International, has been selected as the exclusive bookkeeper of Ant Group’s Hong Kong IPO.

Ant Group's Hong Kong IPO is approved by China Securities Regulatory Commission

However, the Trump administration considers putting Ant Group on trade blacklist.

According to the prospectus published by Ant Group, China International Capital Corporation, Citibank, JP Morgan Chase, and Morgan Stanley are the sponsors of Ant Group’s Hong Kong IPO. China International Capital Corporation and China Securities are the joint sponsors and underwriters of Ant Group’s Shanghai IPO.

At the same time, people familiar with the matter said that taking into account the strong demand, Ant Group plans to increase the listing valuation to at least 280 billion US dollars.

People familiar with the matter said that after preliminary discussions with investors, Ant Group plans to increase its previously estimated $250 billion target valuation by at least 12%. In addition, Ant Group aims to raise approximately US$35 billion through stock offerings.

On September 18, the Shanghai Stock Exchange’s Science and Technology Innovation Board’s Listing Committee announced that Ant Technology Group Co., Ltd. had passed its first offering.

Ant was born out of Alibaba’s Taobao payment business but has not been complacent, actively expanding external life and financial scenarios, forming three major lines of payment, financial services, and innovative business.

As of June 2020, Ant Group’s revenue reached 72.528 billion yuan, and the payment sector only contributed 36%. It provided wealth management, lending, and insurance services through self-operated or financial institutions, contributing 16%, 39%, and 8% of revenue respectively, accounting for a total of 64%. Those are Ant’s largest source of revenue, and the remaining less than 1% of revenue is contributed by innovative businesses.

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