Ant Group has raised 34 billion in the world’s largest IPO

The tech company behind China’s largest payments online payment platform, its dual listing price on the Hong Kong Stock Exchange and Shanghai’s Star Market, is priced at HK ૦ 10.02 (3 10.32) and 68 yuan (13 10.13) per share, according to regulatory filings released on Monday.
That means the initial public offering will raise more than .1 34.1 billion and make the company worth about 31 310 billion. Previous record for IPO The shares, which were issued on the Riyadh Exchange in December last year, were held by Saudi state oil company Aramco, which raised 29.4 billion A.
The issue of shares a A boon for Beijing, which is encouraging the country’s top tech companies to list at home instead of exchanges in the United States, where rumors of a long-running trade war are mounting scrutiny of Chinese companies.

Beijing hopes the decision to sell 1.67 billion shares of the company, or about 11% of the company’s total, in both Hong Kong and Shanghai, will attract long-acquired experienced institutional investors. If the stock price is an indication, that strategy seems to be working.

Powerful tech giant

Ant is a financial technology company affiliated with the Chinese e-commerce group Alibaba (Baba), Which was made public on the New York Stock Exchange in 201 public, including the world record setting IPO. Billionaire Mae has the ultimate control over ants, and is due to the beautiful profits from the sale of shares.

Reflecting Mani’s success with Alibaba, Ant has rapidly evolved into one of the world’s most powerful tech companies. It has established its presence in every aspect of financial life in China, from investment accounts and micro-saving products to insurance, credit scores and dating profiles.

Why US sanctions on China's ant group could be a mere threat

The company’s payment application Alipay had 731 million monthly active users as of September, Ante said in a regulatory filing. The platform paid 118 trillion yuan (.7 17.7 trillion) in the 12 months to June.

The company said revenue for the nine months ended September rose nearly 43% to 118.2 billion yuan (17 17.7 billion) from the same period last year. Total profit rose 74% to 69.5 billion yuan (10. 10.4 billion) during the period.

Xiaomeng Lu, a senior geotechnical analyst at Eurasia Group, said the Chinese government is also set to benefit from the latest economic development plans, which were prepared this week.

“Ant is seen as this national technology champion – he invests in AI, he invests in blockchain,” Lou said. These are priorities for Chinese President Xi Jinping, he added.

Whether ants can keep up with the growing momentum, however, is an open question. Lu noted that ants face stiff competition within China from rivals Tencent (TCEHY), While potential regulatory pressure from countries such as the United States may limit opportunities abroad.


Geopolitical considerations have already been a major background factor in Ant’s IPO.

A growing number of Chinese companies are seeking refuge on the national exchange in the wake of tensions between Washington and Washington, and the success of the kit could encourage more companies to sue, said Brock Silvers, chief investment officer and former chief investment officer at Caiuan Capital. Adams Asset Management.

U.S. threats and sanctions against Chinese tech companies such as Huawei, Ticket OK and WeChat have sent a clear warning, while investigations of Chinese companies on Wall Street are on the rise.

But Coffee was kicked off the Nasdaq after a major accounting irregularity was revealed. Steps have since been taken by U.S. legislators, government agencies and stock exchanges to limit Beijing’s access to major U.S. capital markets.

This atmosphere is probably the main reason why Ante chose to list Alibaba on the exchange in Shanghai and Hong Kong, rather than following Wall Street. In the long run, it could benefit China, as investors rush to snatch ant shares as money is directed to its markets.

The stock is scheduled to start trading in Hong Kong from November 5. The listing will push the market capitalization of the Shanghai Stock Exchange closer to the Tokyo Stock Exchange. According to Lou.