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Jack Ma’s Ant Group Co. is planning to stop taking investor orders for the Hong Kong leg of its initial public offering a day ahead of schedule, as the record sale of shares has already been heavily underwritten, according to people familiar with the matter.
Demand has been so great that the Hangzhou-based firm will close the order book of institutional investors on Wednesday, said the people, who asked not to be identified because the matter is private. The company initially planned to close the Hong Kong book at 5 p.m. Thursday for each region globally, in accordance with the terms of the deal obtained by Bloomberg News. The potential move would align the closure with the Shanghai leg.
A representative for Ant declined to comment.
Ant is looking to breed around $ 34.5 billion through IPOs in Shanghai and Hong Kong, a highly successful list that will be the largest IPO in history and make it one of the most valuable financial firms on the planet. Platform operator Alipay will have a market value of approximately $ 315 billion based on Monday’s filings, greater than JPMorgan Chase & Co. and more than Finland’s gross domestic product. The sale brings Ma’s fortune to $ 71.6 billion, topping the Heirs of Walmart Inc.
This is “a homecoming for the capital markets in Shanghai and Hong Kong,” said John Ho, founder of Janchor Partners. Ho, who invested $ 400 million in Ant two years ago, said he is trying to get more Hong Kong shares, adding that being able to invest in Ant is “priceless.”
Bigger than disney
Ant tops Paypal, Finland’s GDP
Source: Bloomberg, World Bank.
The IPO is attracting the interest of some of the world’s largest money managers and causing a frenzy among individual investors in China clamoring for a share of the sale. In the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for more than 76 billion shares, more than 284 times the initial offering tranche offline, according to Ant’s offer announcement in Shanghai.
T. Rowe Price Group Inc., UBS Asset Management, and FMR LLC, the parent of Fidelity Investments, are among money managers seeking for one part of the deal, a person familiar with the matter has said. Hong Kong stockbrokers are so confident that the IPO will go smoothly that they are offering to allow family investors to buy the shares with up to 20x leverage.
Strong demand steers the long-awaited IPO to beat Saudi Aramco’s $ 29 billion sale last year. Ant valued his Shanghai shares at 68.8 yuan ($ 10.27) each and his Hong Kong shares at HK $ 80 ($ 10.32) each. The company can raise another $ 5.17 billion if it exercises the option to sell additional shares to meet demand, known as greenshoe.
Ant will trade under ticker symbol 688688 in Shanghai and 6688 in Hong Kong, in keeping with Ma’s fondness for the number eight, which is often associated with wealth in China. Ma’s Alibaba Group Holding Ltd., which owns about a third of Ant, is trading under ticker 9988 in Hong Kong.
Ant rules
Chinese fintech sets IPO record
Source: Bloomberg
The fintech giant is moving forward with its landmark offering just days before the US election. Hong Kong’s trade debut will be on November 5, just two days after the US vote, an event that could lead to volatility. in the market if the vote is disputed or the count is delayed.
Ma, the former English teacher who co-founded Alibaba with $ 60,000, is set to become the 11th richest person in the world after Ant’s IPO.
Ma’s 8.8% stake is worth $ 27.4 billion based on the price of shares in Hong Kong and Shanghai. That will bring the 56-year-old’s fortune to $ 71.6 billion in Bloomberg billionaires. Index, higher than that of Larry Ellison of Oracle Corp., L’Oreal SA heir Francoise Bettencourt Meyers and individual members of the Waltons, whose family owns Walmart.
The IPO promises a lucrative payday for some of the world’s largest investment banks. Chosen Ant China International Capital Corp. and CSC Financial Co. to lead its tranche of the Shanghai IPO. CICC, Citigroup Inc., JPMorgan. and Morgan Stanley lead Hong Kong’s bid. Existing Ant shareholders will not be able to sell shares for six months, according to the documents.
(Updates with details on sixth paragraph prices)
