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Jack Ma’s Ant Group Co. obtained key approval from the China Securities Regulatory Commission for its listing in Hong Kong, paving the way for what could be the world’s largest initial public offering, according to people familiar with the matter.
The Chinese regulator gave Ant the green light to request a listing hearing with Hong Kong Exchanges and Clearing Ltd. as early as Monday, the people said, asking not to be identified because the information is private. Ant has already obtained approval from the Shanghai Stock Exchange for its onshore listing.
The IFR reported the approval and hearing date early Monday. A representative for Ant declined to comment, while a representative for CSRC did not immediately respond to a request for comment.
The nod from China’s securities watchdog came later than expected, sparking speculation that Ant’s IPO was running into roadblocks. The company could raise around $ 35 billion in a double listing in Hong Kong and Shanghai in a valuation of at least $ 280 billion, people have said.
Ant Group’s IPO could be the world’s largest, surpassing Saudi Aramco’s record sale for $ 29 billion. It will also mark a victory for the Hong Kong Stock Exchange which lost many of China’s tech stars to US prices.
Ant will not seek fundamental investors for Hong Kong, but will invite large sponsors for its sale in Shanghai to mitigate price fluctuations, people familiar with it have said. The Hangzhou-based firm plans to issue new shares equivalent to around 11-15% of its outstanding shares and split the float evenly between Hong Kong and Shanghai.
– With the help of Lulu Yilun Chen and Zheng Li
