Ant Group set for record $34bn market debut
October 27, 2020 - Billionaire Jack Ma’s Ant Group blockbuster IPO -- which could raise $34.5 billion, blowing past the previous record set by Saudi Aramco -- puts the fintech giant’s valuation at a dizzying $315 billion.
The Chinese tech champion’s shares will begin trading on the Hong Kong Stock Exchange and Shanghai’s Star Market within days, making its initial public offering the largest on record, and the biggest IPO ever outside New York City.
Beijing has been encouraging the country’s top tech companies to list at home instead of on exchanges in the U.S., where scrutiny of Chinese companies is rising amid the long-running trade war.
The previous IPO record was set in December 2019, when Aramco’s shares valued at $29.4 billion began trading only on the Tadawul -- Saudi Arabia’s stock exchange.
Ant’s listing would also be more extensive than that of its sister company, the Chinese e-commerce giant Alibaba, which raised $25 billion when its shares started trading on the New York Stock Exchange in 2014.
The company is the parent of the Alipay mobile payment service, which offers hundreds of millions of people in China and Asia credit card, debit card, mutual fund and even insurance -- all on a single mobile platform. Alipay has more than 730 million monthly users, more than twice the population of the United States.
Last year, Ant earned $2.7 billion in profit on $18 billion in revenue. It handled $17.6 trillion in digital payments in mainland China during the 12 months that ended in June.
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