Ant Group raises $ 34.5 billion in largest preliminary public providing of all time
An Ant Group logo can be seen at the company’s headquarters in Hangzhou, Zhejiang Province, China on October 9, 2020.
Ding Junhao | Visual China Group | Getty Images
Ant Group would raise $ 34.5 billion for its double IPO after setting the price of its shares on Monday. This makes it the largest listing of all time.
The Chinese financial technology giant had previously announced that it would split its share issue evenly between Shanghai and Hong Kong and issue 1.67 billion new shares at each location.
The Shanghai-listed Ant Group shares are valued at 68.8 yuan each. Issuing 1.67 billion shares would raise 114.94 billion yuan, or $ 17.23 billion, at the exchange rate reported in official filings.
The Hong Kong listed stocks were valued at Hong Kong $ 80 each, raising Hong Kong $ 133.65 billion or $ 17.24 billion.
The listing would bring in just under $ 34.5 billion in total, with the possibility that that number could rise if the so-called over-allotment option is exercised based on demand. That would make it the biggest IPO of all time, ahead of former record holder Saudi Aramco, who raised just over $ 29 billion.
Ant’s valuation based on pricing would be $ 313.37 billion, higher than some of the largest banks in the US, including Goldman Sachs and Wells Fargo.
Ant Group is expected to start trading in Hong Kong on November 5th. The company has not announced when its Shanghai shares will start trading.
The Chinese company previously said that strategic investors have agreed to subscribe to 80% of the company’s shares issued in Shanghai. Alibaba, through its subsidiary Zhejiang Tmall Technology, has agreed to purchase 730 million A shares, which are yuan-denominated shares of Chinese companies listed on mainland stock exchanges. This allows Alibaba to maintain its roughly 33% stake in Ant Group.
Ant prices come after regulators in mainland China and Hong Kong gave the go-ahead for the listing last week.