Ant Group formerly known as Ant Financial and Alipay, is an affiliate company of the Chinese Alibaba Group.
Ant Financial, the fintech subsidiary of Chinese e-commerce giant Alibaba, plans to raise at least $ 34.5 billion (€ 29.2 billion) in its listing on the Shanghai and Hong Kong stock exchanges, making it the largest Initial Public Offering (IPO) of history.
The company reported in separate statements that it will issue 1.67 billion shares at a price of 68.8 yuan (10.27 dollars, 8.7 euros) each in the case of the Shanghai Stock Exchange and 80 Hong Kong dollars (10.32 dollars, 8.73 euros) for Hong Kong.
Thus, the IPO of Ant would surpass that of the Arab oil company Saudi Aramco, whose IPO in the Riyadh Stock Exchange in December 2019 was estimated at 25.6 billion dollars (21.664 million euros).
The exit to the trading floor of Shanghai could be settled with at least a collection of about 114.9 billion yuan (17.150 million dollars), and that of Hong Kong in about 133.600 Hong Kong dollars (17,236 million dollars).
Ant could raise up to a maximum of 5.2 billion more if underwriters exercise their option to buy up to 15% more shares under a deal called “greenshoe.”
On Wednesday, the group received permission from the China Securities Regulatory Commission for its shares to be listed on the STAR market of the Shanghai Stock Exchange, known as the “Chinese Nasdaq” for its orientation towards technological values, and also seeks to exit simultaneously on the trading floor in Hong Kong.
Listing on those two trading floors is something that no other private company has done before and, Alibaba noted in a statement sent to the Hong Kong Stock Exchange last week, could cause Ant’s value to rise to between 380 and 460 billion euros. dollars (320,000 and 388,196 million euros).
Ant Financial, founded in 2014 and recently renamed Ant Group, intends to use the funds raised to expand its user base and digital services, as well as to develop other utilities such as cross-border payments.
The operating income of Ant, developer of the payment platform of the conglomerate Alipay, one of the most used in China, reached between January and September 118,191 million yuan (17,735 million dollars, 14,867 million euros), which represents an increase 42.56% year-on-year.
Since September 2019, Alibaba owns 33% of Ant Financial, while until that date the link between both companies was that the “fintech” branch paid the parent company 37.5% of its gross profits as a royalty.