Ant Group, the financial technology arm of Chinese e-commerce giant Alibaba, plans to raise $34.5 billion when it lists its shares on the Hong Kong and Shanghai stock exchanges—that would make its initial public offering the largest in history.
- Shares in Hong Kong will be priced at $10.30, and shares in Shanghai will be priced at about $10.25.
- The previous record holder is Saudi Aramco, the state-run oil company in Saudi Arabia, which raised $29.4 billion in a public listing in December.
- Shares of Alibaba, Ant Group’s original parent company (co-founded by billionaire Jack Ma) that now owns a 33% stake, were flat in premarket trading on Monday.
$313 billion. That’s how much Ant Group is worth based on the pricing of its shares—more than Paypal ($238 billion) and only a little bit less than JPMorgan ($316 billion).
Ant Group is the parent company of Alipay, which had more than one billion active users as of June. Alipay allows users to make purchases, borrow money, invest, and even buy insurance—all in one place on a mobile phone. More than 80 million merchants use Alipay for business over the course of a single month, according to documents filed in August ahead of the IPO.
Earlier this month, the U.S. Department of State reportedly proposed adding Ant Group to a trade blacklist in order to deter American investors from taking part in the IPO.
WHAT TO WATCH FOR
Shares of Ant Group will start trading on the Hong Kong Stock Exchange on November 5, according to a Monday filing with the exchange.