(Bloomberg) – In the initial list of four sponsors of the Ant Group initial public offering in Hong Kong, one bank’s name was notably missing: Alibaba’s Credit Suisse.
Credit Suisse Group AG has been fighting for a major role in the offering, and Ant is leaning toward naming them as joint global coordinator for its Hong Kong listing, which could raise around $ 10 billion, according to people familiar with the matter, who asked not to be identified as the information is private. Global coordinators help manage the marketing of an agreement and the collection of investor orders. They are one step below sponsors, who get the best billing on the prospect and are responsible for maintaining the exchange.
Billionaire ant Jack Ma, the crown jewel of his Alibaba empire, is looking for a simultaneous dual listing in Hong Kong and the STAR directory of the Shanghai stock exchange, looking for a valuation north of $ 200 billion. Alibaba Group Holding Ltd. owns one third of Ant.
Ant has chosen four sponsors for its share sale in Hong Kong, Bloomberg News reported. The banks include China International Capital Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley, known people said.
Credit Suisse advised Alibaba’s independent committee when the company bought a 33% stake in Ant, and did not advise on Ant’s latest round of fundraising, while the other four banks did, the people said. They said that gave them priority to get a role as an IPO sponsor.
Ant is still finalizing its bank list and the details of the lineup could change, the people said. More banks could be added at a later stage as banks, including Goldman Sachs Group Inc., aggressively launch for a role, they said. Representatives for Ant, Credit Suisse and Goldman Sachs declined to comment.
Credit Suisse rose 1.1% in Zurich on Tuesday, the highest in a week. The benchmark Swiss performance index fell 0.3%.
Credit Suisse’s absence from the sponsor list marks a break with history, given that Ma’s empire has given her a wealth of top-notch work in the past. The Swiss lender was a major underwriter of Alibaba’s $ 25 billion IPO in 2014. He and Morgan Stanley were the banks that received the most commissions for the offer, Bloomberg News reported at the time. Credit Suisse has also advised Alibaba on at least $ 14 billion in acquisitions, more than any other bank, according to data compiled by Bloomberg.
The bank is ready after a tumultuous year. His job as a primary underwriter in the IPO for Luckin Coffee saw him named in a lawsuit after the beverage chain was embroiled in a scandal. Credit Suisse then lost his role in the IPO of Chinese online healthcare firm WeDoctor.
Wall Street banks are fighting aggressively for big name IPOs due to money and momentum in the league table ranking. A deal like Ant could generate tens of millions of dollars in fees, as well as the prestige that can influence clients’ choice of potential bankers in future transactions.
(Updates to the Credit Suisse share price in the seventh paragraph).
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