- Ant Group will raise $US34.5 billion through a dual initial public offering in November, making it the biggest-ever IPO.
- The financial services giant aims to evenly split its 1.67 billion-share debut across the Hong Kong and Shanghai exchanges.
- Shares will be priced at 68.8 yuan ($US10.27) each in Shanghai and at 80 Hong Kong dollars ($US10.32) in Hong Kong. The collective sum trounces the previous $US29 billion record set by Saudi Aramco’s IPO last year.
- Ant is set to begin trading in Hong Kong on November 5, according to regulatory filings.
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Ant Group plans to raise $US34.5 billion in a dual initial public offering next month, edging out Saudi Aramco’s debut to become the largest listing of all time.
The financial services company â€” an arm of billionaire Jack Ma’s Alibaba empire â€” will evenly split its offering, selling 1.67 billion shares each in debuts in Shanghai and Hong Kong. Shares listed on the Shanghai exchange will be priced at 68.8 yuan ($US10.27) each, according to regulatory filings published Monday. The pricing implies a 114.9 billion yuan ($US17.2 billion) windfall from the listing.
Shares set to trade on the Hong Kong exchange are priced at 80 Hong Kong dollars (10.32) each, setting up the other half of the listing to bring in 133.7 billion Hong Kong dollars ($US17.2 billion). In total, the dual listing can value Ant at $US313.4 billion should its market debut enjoy strong investor demand.
Such an IPO would also trounce the record set by Saudi Aramco in 2019. The oil titan raised $US29 billion in a share sale that temporarily established it as the world’s highest-valued company.
Ant could even push its fundraising total just below $US40 billion if it sells shares through so-called greenshoe options. The agreements allow the company’s underwriters to sell additional shares than initially planned. If investor demand permits, Ant can raise another $US5.2 billion across both exchanges through the over-allotment options.
The financial tech firm is expected to begin trading in Hong Kong on November 5, according to the filing. It’s not yet known when shares will begin trading in Shanghai.
Ant’s debut is slated to bring tech-IPO proceeds to their highest level since the dot-com bubble’s 1999 peak. Strong demand for new offerings has lifted the market from its March slump and reinvigorated IPO dealmaking despite the bleak economic backdrop. July alone saw companies raise $US19 billion through listings, the biggest one-month haul since September 2014.
China International Capital Corp. and CSC Financial will underwrite Ant’s Shanghai listing. CICC, Citigroup, Morgan Stanley, and JPMorgan will lead the Hong Kong IPO.
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