E China Officially Allows Ant Group To Launch $35 Billion IPO

The giant Chinese fintech company Ant Group has finally attracted the attention of regulators. 

Reuters reported big news for the firm on Wednesday! Recently it was announced that China’s top securities give Ant Group permission to register its Shanghai offering. After having a lot of attempts now they finally reached their desired agreement and as a result, the company is going to hurdle for their great initial public offering (IPO) for no less than 35 billion USD. 

The news is more favorable for the company than anybody could have imagined because this listing will definitely set a new record as it’s going to be the largest initial public offering in the world. The previous record was set in December 2019 by Aramco, Saudi Arabia’s oil giant which was about 30 million USD. After December the things haven’t changed but now Ant Group deserved the public attention at last, as a new record is much greater than Saudi Aramco’s last result. Other than this, the reached IPO would probably be the first simultaneous listing in Hong Kong and on the whole STAR Market in Shanghai which is a major Chinese technology-focused equities market functioning effectively since 2019.

Ant Group is a child company of Chinese e-commerce group Alibaba and is actually one of the highest valued fintech companies in the world. It is 33% owned by this Chinese multinational technology company and is controlled by founder, Chinese business magnate, and popular investor, Jack Ma. As sources confirm, Ant Group is going to list simultaneously in Hong Kong and Shanghai in the following weeks and now it has official permission for doing this dual listing from the China Securities Regulatory Commission. 

So by this time Ant group is not only the financial technology giant but also the biggest IPO of the year. This means that changes are coming to the global stock market as they plan to split the stock issuance equally across Shanghai and Hong Kong markets and issue 1.67 billion USD shares in each of the countries. This is more than 10% of the total outstanding shares after the IPO. But it’s not everything and if the over allotment option will be exercised, the number of shares will grow even more. Besides, it’s important to mention that the Chinese financial giant also updated its IPO along with the information on the share structure. 

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