Chinese fintech Ant Group received approval from the China Securities Regulatory Commission for the Shanghai portion of its blockbuster initial public offering, which is the last step in the review process and a milestone that comes days after it reportedly got a green light for the Hong Kong portion of its highly anticipated dual listing.
The company is now eyeing completing its dual listings over the next few weeks, Reuters reported. A spokesperson for Ant Group declined to comment on the IPO timetable going forward.
The last necessary approval was made public Wednesday as part of a new batch of documents posted to the CSRC’s website that are part of the IPO process to list on the Shanghai Stock Exchange’s STAR Market. The fintech reportedly got permission on Monday from the HKEX’s Listing Committee for its Hong Kong portion, after the CSRC also approved that listing. Shanghai's listing committee had already signed off on the listing in September.
The approvals come days after the fintech raised its IPO valuation target from $250 billion to at least $280 billion, Bloomberg reported. The company is seeking to raise $35 billion from the IPO, according to Bloomberg, which also reported that it has added ICBC International, Barclays and BOC International as joint book runners for its Hong Kong listing.
Ant Group first disclosed its dual IPO plans in July and submitted detailed paperwork in August.
The fintech notes in its Hong Kong paperwork that it is controlled by Alibaba co-founder Jack Ma and that the e-commerce company has a 33% stake in it. It also notes that its Alipay business was part of Alibaba before a 2011 spinoff.
The company, which reported strong revenue and profit growth over a multi-year period, also detailed how its payments segment makes up a dwindling share of its revenue. The Hong Kong document shows that the segment contributed 54.9% in 2017 but just 35.9% for the first half of 2020. In contrast, Ant Group said that its financial technology platforms segment, which includes its credit, investment and insurance businesses, went from a 44.3% contribution in 2017 to 63.4% by the first half of 2020.