Ant Group seeks to raise more than $34B in world’s largest-ever IPO

Last modified October 27, 2020. Published October 26, 2020.
Alibaba founder Jack Ma. (AP Photo/Thibault Camus, File)

Alibaba founder Jack Ma. (AP Photo/Thibault Camus, File)

Chinese fintech is seeking to raise more than $34 billion from its upcoming blockbuster initial public offering, as the company disclosed pricing terms Monday for its two listings in Hong Kong and Shanghai that would make its IPO the largest ever.

The amount the firm is seeking would eclipse the current record holder, Saudi Aramco, which raised $29.4 billion. The oil company in turn took the crown from the 2014 IPO of Alibaba, a major Chinese e-commerce company with extensive ties to Ant Group, although the fintech is taking a very different path from Alibaba, which chose to list its shares in the U.S.

Ant Group is controlled by Alibaba co-founder Jack Ma, and the e-commerce company holds a 33% stake in the business. Additionally, Ant Group’s hugely popular Alipay business was spun out from Alibaba in 2011.

The fintech, in a pair of listings for both locations’ stock exchanges published Monday, said that it will price its Shanghai IPO at CNY 68.80 ($10.25) per share and its Hong Kong IPO at HKD 80.00 ($10.32) per share.

Both listings will involve the issuance of 1,670,706,000 new shares each, Ant Group said, with the Hong Kong shares known as H Shares and the Shanghai shares known as A Shares. The Hong Kong listing will bring in about HKD 133.66 billion ($17.25 billion), while the Shanghai listing will bring in roughly CNY 114.94 billion ($17.12 billion).

The fintech, in its Hong Kong filing, disclosed that its total amount of outstanding shares after the two IPOs are complete will be nearly 30.38 billion, not including over-allotments, and with a market value of more than $310 billion.

Ant Group said that it is planning to list its Hong Kong shares on Nov. 5, while it disclosed a timeline of preparation events in Shanghai from Oct. 22 to Nov. 4, a period that includes investor subscriptions.

The company also said that it has nearly 250.61 million over-allotment shares for each listing.

The fintech reported that it has a slew of financial firms working on the listings. For the Hong Kong IPO, Ant Group said the companies are , JPMorgan Chase, CICC, Morgan Stanley, CCB International, Credit Suisse, , Barclays, , ABC International, Deutsche Bank, CMB International, BOC International, ICBC, , Mizuho, YF Financial, SPDB International, Loop Capital, Stifel, , LongBridge, Baird and .

Meanwhile, the company reported that its Shanghai IPO includes CICC, BOC International, CSC, Securities, Shenwan Hongyuan and Huatai United Securities.

Ant Group’s pricing of the shares comes after the company received its last necessary regulatory approval for the highly anticipated dual listing last Wednesday, which was from the Regulatory Commission for its Shanghai listing.