Ant Group receives ultimate approval for its huge double IPO and proclaims its share construction
GUANGZHOU, China – Ant Group has overcome the final regulatory hurdle for its massive IPO. The pricing of their shares is scheduled to be released next week.
On Wednesday, the China Securities Regulatory Commission gave the go-ahead for the Ant Group's dual listing in Shanghai and Hong Kong. It did so after the Hong Kong Stock Exchange approved the offshore portion of the listing as well.
The Chinese financial technology giant, 33% owned by Alibaba and controlled by founder Jack Ma, has also updated its IPO prospectus with information on its share structure.
The stock issue will be split evenly between Shanghai and Hong Kong and 1.67 billion shares will be issued at each location. This corresponds to 11% of the shares outstanding after the IPO. The number of shares could increase depending on demand if the so-called allotment option is exercised.
The Ant Group will now hold a roadshow to market the IPO to investors and evaluate the shares on October 27th.
Strategic investors have agreed to subscribe to 80% of the company's A-shares issued in Shanghai. Alibaba has agreed to purchase 730 million A shares through its subsidiary Zhejiang Tmall Technology. This allows Alibaba to maintain its roughly 33% stake in Ant Group.
The Ant Group has also released some updated financial figures for the first nine months of 2020. The monthly active users of their Alipay mobile payments app increased from 711 million in June to 731 million in September.
Revenue was 118.19 billion yuan ($ 17.73 billion), an increase of more than 42% over the previous year.
The Ant Group listing could be one of the greatest of all time. Reuters previously reported that the listing could raise up to $ 35 billion. An analyst previously told CNBC that Ant's valuation could exceed $ 200 billion.