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For the bunker of the financial institution involved in the new listing of shares (IPO) of the Ant Group, the agreement would have led to an increase in bonuses to cover the large sums necessary to buy passenger cars, boats and even villas.
Deal makers such as City Group and JP Morgan Chase are the biggest in Ant’s Hong Kong IPOHe was supposed to receive a fee of nearly $ 400 million (about 42 billion yen), but he was confused by the sudden suspension of IPOs in Hong Kong and Shanghai just before the scheduled listing date. Several executives familiar with the matter said they were shocked and are waiting to see what happens in the future.
“The postponement was not due to lack of demand or market problems, but to internal and regulatory concerns,” said Lise Buyer, managing partner of Class V Group, which provides IPO advice to companies. “The impact on the Chinese IPO market will be less,” he said.
Ant employee waiting for an elevator in an office in Hangzhou, China (2nd)
Photographer: Qilai Shen / Bloomberg
The four banks most likely to benefit from Ant’s Hong Kong IPO are Citi, the chief secretary, JP Morgan, Morgan Stanley and China International Finance (CICC).
Ant has not announced the Shanghai IPO fee. For the Hong Kong IPO, he intends to pay banks up to 1% of revenue, and if the over-allotment option is exercised, the fee could be up to $ 198 million.It is clarified in the notification.
The 1% fee rate is below average for companies that have raised more than $ 1 billion in Hong Kong IPOs, but the size of Ant’s IPO is sure to make a lot of money for banks. Additionally, the subscriber will also receive a 1% brokerage fee for the orders he handles.
The exact amount paid to the insurer is currently unknown, but banks are unlikely to get more than compensation for their costs until the IPO program resumes.
“Generally speaking, companies are not required to pay banks until the transaction is complete,” Buyer said. For the moment, the bunker must focus on bailout deals and uphold the interests of investors.
“It’s true that sentiment has been compromised,” Alliance Bernstein analyst Kevin Kwek said in a client report. “The event warns investors that they have not considered regulatory risk.” It was analyzed.
Original title:
Bankers reeling as Ant’s IPO collapse threatens $ 400 million payday （抜 粋）
