As per the market estimates, the Jack Ma-backed Ant Group will list its shares at the Hong Kong and the Shanghai STAR at 69 yuan per share price. This could further boost Shanghai’s status as the fastest ever-growing market in the world.
China’s Ant Group is preparing for a dual listing on the Hong Kong as well as Shanghai Stock Exchanges. At $35 billion, this could be the world’s largest-ever IPO in history beating the record of Saudi Aramco‘s $29.4 billion listing last December.
Sources familiar with the matter said that large investors have submitted bids in the range of 68-69 yuan per share. Backed by Jack Ma’s Alibaba, the Chinese financial giant is all set to make new records on charts. As per the $35-billion valuation determined by market analysts, Jack Ma expressed his excitement. Speaking at the Bund Summit in the eastern financial hub of Shanghai, Ma said:
“It’s the first time that the pricing of such a big listing — the largest in human history — has been determined outside New York City. We didn’t dare to think about it five years ago, or even three years ago. But a miracle just occurred”.
On Saturday, October 24, a person familiar with the matter gave some additional details to Reuters. He said that Chinese fund managers are bidding for the Ant share at 69 yuan per share. At this price, the financial giant Ant Group will raise a massive 115.3 billion yuan ($17.3 billion) with the Shanghai listing. Also, this could value the whole company at 2.1 trillion yuan ($314 billion).
In its Shanghai STAR Exchange listing, Ant Group plans to float nearly a massive 1.67 billion shares. All strategic investors with a locking period of 12 months in Ant’s STAR IPO, will account for 80% of the Shanghai listing. Besides, with the dual listings, the Ant Group will be selling 11% of its share capital. Amid the rising Sino-U.S. tensions, the Ant Group IPO will also strengthen Shanghai’s status as the fastest-growing capital markets.
Preparing for Ant IPO Jack Ma Takes On the Regulators
Speaking at the event, Jack Ma said that the existing regulatory system needs a long-awaited update. He said that the old school regulatory and financial system has been stifling innovation and requested an immediate revamp. Ma said:
“Today’s financial system is the legacy of the Industrial Age. We must set up a new one for the next generation and young people. We must reform the current system.”
He said that financial institutions should leverage technology and extend more support to individuals and small firms. Established after World War 2 and still continuing, he calls the global system too risk-averse for new-age businesses. Ma also warned about the rising risks in the global economy and called the Basel Committee on Banking Supervision “an old men’s club”.
He also added that the Chinese banks currently operate with a “pawnshop” mentality. He said that if we continue with this, the existing model will fail to fuel future growth. Ma thus calls for a universal banking system to extend support to individuals and small businesses.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.