Ant Group will go public in Hong Kong on November 5 and at an unspecified time in Shanghai. A launch that promises to set a record since the release of the Chinese group, owners of Alipay, must bring in 29 billion euros, according to documents published on October 26.
Via Ant, Alipay to beat the record of its “old” parent company Alibaba
With a donation campaign of 29 billion euros, the largest in the history of the stock markets, the Ant Group will break the record of 2019 for the oil giant Saudi Aramco with almost 25 billion euros. Ant Group, in particular, is set to break a previous record, which is the quashing of e-commerce giant Alibaba from 21 billion in 2014. It turns out that Alipay, as the name suggests, was an application by Alibaba until 2011 The Ant Group, led by Alibaba founder Jack Ma, remains closely associated with its parent company.
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The Ant Group specializes in online payments. The application is used by more than 730 million Chinese users for credit cards, debit cards, mutual funds, insurance, etc. However, Alipay also offers all kinds of payments on financial products that lend money to small businesses that are little appreciated by the Chinese banking system. Alipay dominates the Chinese market over WeChat Pay linked to another BATX, Tencent. The annual transaction volume is astronomical and corresponds to 14,400 billion euros in retail. The company itself is valued at € 265 billion.
Negotiations on the Hong Kong and mainland China IPOs were concluded last week. Ant Group is expected to be listed in Hong Kong beginning November 5th and Shanghai at an as-yet-unknown date.
In two press releases, Ant announced that it was selling 1.67 billion shares in Hong Kong for 80 Hong Kong dollars each and 1.67 billion shares in Shanghai for 68.80 yuan. 80% of the stocks sold in Shanghai will go to strategic investors, 44% of which will go to Alibaba. The latter undertake to keep their shares for at least a year.
The risk of being targeted by regulators on both sides of the Pacific
However, the project is not without risk and could fail. China wants to monitor the practices of Ant and its consumer credit more closely. The other risk to the company lies in the US. The country is reportedly considering adding Ant to the US State Department’s blacklist. Right now, these risks don’t seem too worried Ant’s strategic investors, but any possible American and Chinese reactions to the fintech giant’s announcements are being closely monitored.