Jack Ma’s Ant Group Co. is expected to see an upsurge of nearly $ 35 billion through IPOs in Hong Kong and Shanghai. This prizewinning situation would be considered the world’s most significant selling stock to date.
Fintech is valuing its stake in Shanghai at 68.8 yuan ($ 10.27) in cash and its Hong Kong stake at $ 80 ($ 10.32) each. According to Monday’s statement, Ant will be worth about $ 280 billion before the IPO and raise about $ 34.5 billion from Shanghai and Hong Kong before exercising the greenshoe option.
Topping Previous Sales
The company’s IPO is expected to exceed Saudi Aramco’s sales of $ 29 billion last year. It could raise an additional $ 5.17 billion if it took advantage of Hong Kong and Shanghai’s greenshoe options.
That would yield Ant’s valuation of around $ 320 billion, which is more significant than JPMorgan Chase & Co. It will also be four times Goldman Sachs Group Inc.valuation.
In their suggested Shanghai IPO initial price, institutional investors subscribed to more than 76 billion shares, which is more than 284 times the initial stage for the offline offering under Ant’s A-share offering.
Breakdown of the IPO
The fintech giant that manages the Alipay platform invited its great bid days before the US election. The day of listing in Hong Kong is November 5, just two days after the US vote. It can lead to market volatility if the vote is grabbed or the count is delayed.
Based on the prospectus on the Shanghai Stock Exchange, the company will not issue more than 1.67 billion shares in China, which is 5.5 percent of the total shares before the greenshoe would spend the same amount on Hong Kong, offering about 3.3 billion shares in total. The registration date in Hong Kong is November 5.
Ant chose China International Capital Corp. and CSC Financial Co. to lead the IPO phase in Shanghai. CICC, Citigroup Inc., JPMorgan. It and Morgan Stanley led the proposal in Hong Kong. Ant’s existing shareholders will not be able to sell the shares for six months under the motion.
Strategic investors whose investment in Ant’s initial public offering will be completed in about 12 months will account for about 80% of Shanghai’s float. For the Hong Kong part, Ant Group now plans to open an order book soon and start bidding on a bid price in the coming days, the report said.
Alibaba Group Holding Ltd., one of Ma’s founders and currently about a third of Ant, has agreed to subscribe to 730 million shares in Shanghai, which, according to the prospectus in Shanghai, are listed under the mark 688,688. Alibaba will hold about 32% of Ant’s stake after the IPO.
