Alibaba fintech arm eyes record IPO with HK-Shanghai listing

25-Sep-2020 Intellasia | AFP | 6:02 AM Print This Post

The financial arm of Chinese e-commerce titan Alibaba is planning the biggest IPO in history, raising as much as $35 billion in a joint listing in Hong Kong and Shanghai, a report said Thursday.

And in a sign of Ant Group’s confidence in the share sale, it will not seek cornerstone investorslarge institutions that agree to hold the stock for an extended time to provide confidence and stability in new listings.

The company is looking to raise the cashwhich would be far higher than the $29 billion chalked up by Saudi Aramco in Decemberin a split float between the two Chinese cities, said Bloomberg News, citing unnamed sources. The plan values Ant Group at about $250 billion, it added.

The company runs Alipay, one of the two dominant online payment systems in China, where cash, cheques and credit cards have long been eclipsed by e-payment devices and apps.

After getting approval from the Shanghai Stock Exchange for a listing last week, the Hangzhou-based firm is now seeking to have a listing hearing with Hong Kong stock exchange as early as next week, with an eye on a debut in October.

In its filing in August, Ant said it will use the proceeds to expand cross-border payments and enhance its research-and-development capabilities.

The decision not to list in New York is a major loss for US markets and comes as Washington ramps up scrutiny of Chinese tech firms.

A number of high-profile Chinese firmsespecially those in techhave looked to Hong Kong as they shun New York over the tensions between Washington and Beijing.

It is also a shot in the arm for Hong Kong as fears mount over the potential fallout of Beijing’s imposition of a new national security law on the city banning subversion and foreign interference.

In June, mainland e-commerce giant tech firm NetEase raised almost $7 billion between them in separate listings.


Category: Hong Kong

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