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Ant Group’s plan to create an unprecedented listing in history is in crisis after the Shanghai Stock Exchange cited “major changes” in regulatory rules. Chinese companies and suspend the initial public offering of Ant.
Ant said in response to the Nikkei that it would also suspend the IPO on the Hong Kong stock exchange. Before that, the company planned to cross the IPO on the Shanghai and Hong Hong exchanges on Thursday and expected to raise $ 39.6 billion on both exchanges.
The IPO’s cessation came after Ant’s top leaders and the largest individual shareholder, billionaire Jack Ma, were summoned during a meeting with Chinese authorities. Sources revealed that the content of this meeting was warning about state regulations.
Jack Ma, Chairman Eric Jing, and CEO Simon Hu met with representatives from the Central Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the Foreign Exchange Administration. government.
In a statement Tuesday night, the Shanghai exchange said that supervisory interviews by regulatory agencies and changes in the company’s business practices governing the rules were “important.”
“There are many significant issues that could prevent your company from meeting the IPO disclosure requirements.”
“The exchange has decided to postpone the IPO of the company. We will stay in contact with the company and its sponsors.”
Shares of Alibaba, which owns 1/3 Ant, are down more than 8%, equivalent to an evaporating market capitalization of more than $ 67 billion on the New York Stock Exchange after the announcement of the Thuong Hai Stock Exchange. .
In a statement to the Hong Kong Stock Exchange, Ant said he had been notified by Chinese regulators that the company “did not meet listing standards or disclosure requirements” in Shanghai. Hai “due to significant issues related to the regulatory interview with the company’s president and CEO and recent changes in the financial technology legal environment.”
Ant also stated that he will repay the money that investors have placed in advance to buy the company’s shares “as soon as possible.”
Ant’s initial public offering, which closed last weekend, received record buy subscriptions on the Shanghai and Hong Kong exchanges. The group of individual investors has bet for 3 trillion dollars.
Ant said in a statement earlier today that it will embrace the recommendations of the meeting with Chinese regulators “deeply” and will follow guidelines that include constant innovation, open to scrutiny. and for the real economy.
Van Dam
