- Ant Group’s historic $ 35 billion IPO is attracting unprecedented interest from retail investors in Shanghai and Hong Kong.
- Jack Ma’s financial services firm has received more than $ 3 trillion in orders from individual investors on its dual lists in Hong Kong and Shanghai.
- Approximately 19.1 trillion yuan (2.9 trillion) worth of orders were raised in the Shanghai section, according to legal filings. The Hong Kong allocation drew 1.3 trillion Hong Kong dollars (168 billion USD) in the bid, sources familiar with the matter told Reuters.
- Shanghai allocation was overregistered 872 times, while half of Hong Kong had 389 times more bids than offered.
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Ant Group aims to raise more cash in its initial public offering than any other IPO in history, and the big launch is driving similar demand never before. in the retail investment world.
The financial services company – a subsidiary of Jack Ma’s Alibaba empire – has received more than $ 3 trillion in orders from retail investors on its dual lists in Hong Kong and Shanghai. An estimated 19.1 trillion yuan ($ 2.9 trillion) in bids were raised during the IPO in Shanghai, according to legal filings. The total amount surpasses the stock exchange’s offer up to 872 times.
Sources familiar with the matter told Reuters that the Hong Kong debut raised HK $ 1.3 trillion ($ 168 billion). That’s about 389 times the set number of shares available for availability. The match in Hong Kong also garnered almost twice as much bids compared to the city’s next biggest debut.
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Interest in the company’s launch was so great, Bloomberg reported, that the foundation of a brokerage firm had collapsed.
Ant is expected to raise $ 34.5 billion through two offers in November, breaking the record for IPO procedures set by Saudi Aramco last year. The listing will likely value Ant at over $ 313 billion. The company is expected to start trading in Hong Kong on November 5; It is not known when the stock will start trading in Shanghai.
The tidal wave of retail demand shows that individual investors do not have to bear many of the risks faced by the company. First, an IPO was delayed earlier this month after China’s market regulator reported that the company had been probing the company for a potential conflict of interest. The China Securities Regulatory Commission has investigated whether Ant’s flagship platform, Alipay, is the only channel that retail investors can access IPOs.
Ant also faces scrutiny in the US. The State Department proposed adding the company to its trade blacklist earlier this month, according to Reuters. The Chinese hawks in the Trump administration are said to want to discourage US investors from participating in the company’s IPO.
The move also accelerates a series of positive trade measures that keep US-China tensions high. If President Donald Trump wins the election, Ant could be the target of further investigation by the United States.
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