Ant Group to Raise Around USD 24 Billion in the Shanghai IPO
Author : Pankaj Singh | Published Date : 2020-10-27
Ant Group, an affiliate company of the Chinese Alibaba Group, to raise around US$17.3 billion in the Shanghai leg of nearly US$35 billion dual listings, after certain large investors submitted bids in 68-69 yuan per share range, according to the reports.
According to the reports, various large fund administrators from China had bid for Ant Group shares in the listing at nearly 69 yuan apiece on the Nasdaq-style Star Market in Shanghai
Ant Group was able to raise around 115.3 billion yuan (US$24 billion), with 69 yuan per share in the Shanghai tranche, surging the company’s value to around 2.1 trillion yuan, before a 15% greenshoe or over-allotment alternative is applied.
The simultaneous listing in Shanghai and Hong Kong of the Ant Group would beat the preceding biggest initial public offering (IPO), Saudi Aramco's US$29.4 billion shares last December.
Jack Ma, the founder of Alibaba, confirmed that the pricing of Shanghai shares was decided last Friday, without disclosing any further details. He claimed this to be the first time in history that the pricing of such a big listing is determined outside New York City.
As per the local market rules, the final IPO price, which might also be the 1st dual listing in Hong Kong and on the year-old Star, is following the directions from large investors.
Ant will be listed under code 688688 for the Shanghai listing, which as per the Chinese culture, is a combination of two auspicious numbers, symbolizing good fortune and long-lasting prosperity.
Ant Group plans to sell around 1.67 billion shares in the Shanghai tranche, which is reported to be the biggest IPO in China, exceeding the record set by Agricultural Bank of China's US$10.1 billion Shanghai shares in 2010.
The IPO is expected to burnish Shanghai’s exchange status as a fast-growing center for capital markets, at the times when tension between China and the US have triggered concerns about the listing of Chinese companies in New York.
About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
Related News
Bayers new CEO initiates management job cuts to accelerate decision-making
Bayer newly appointed CEO, Bill Anderson, has reportedly unveiled plans to streamline the companys management structure in a bid to expedite decision-making processes. This marks the first step in a broader effort to transform the embattled German company, which has been under pressure from inv... Read More>>
Smurfit Kappa in Merger Talks with WestRock worth $19 Billion
Smurfit Kappa, a prominent player in the packaging industry, is reportedly engaged in merger discussions with its US counterpart, WestRock. This prospective merger has the potential to create a cardboard box-making powerhouse boasting a market value approaching $19 billion (€17.8 billion). Furt... Read More>>
RBC plans job cuts to take on anticipated economic softening
The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third ... Read More>>