The pricing for Ant Group’s upcoming IPO in Hong Kong and Shanghai puts the value of the fintech giant at 2.1 trillion yuan (approx. USD$313.2 billion).
The Shanghai Stock Exchange (SSE) announced on 26 October that following consultations with nearly 10,000 institutional accounts the price for Ant Group’s A-share listing was confirmed to be 68.8 yuan per share.
This puts Ant Group’s total market capitalisation at 2.1 trillion yuan, as compared to prior forecasts of between 2.5 – 3 trillion yuan by multiple investment banks.
Alibaba also announced on 26 October that it would subscribe for 730 million Ant Group A shares, for a consideration of 50.2 billion yuan based on an issuance price of 68.8 yuan per share. Following the issue Alibaba is expected to hold around 31.8% of equity in Ant Group.
The pricing of Ant Group’s concurrent listing in Hong Kong is set at 80 Hong Kong dollars, with expectations for a H-share listing on 5 November. Ant Group’s H-shares will be sold in lots of 50, with a ticker code of 6688.
In January 2020 private share transactions implied that Ant Group’s value was USD$200 billion.
Ant Group is an affiliate of Jack Ma’s Alibaba, and responsible for operating the Alipay payments and online wealth management platform.
According to figures from Alibaba Alipay and its e-wallet affiliates have around 1.2 billion annual active users, of whom 900 million are located within China.
In 2019 Alibaba swapped its rights to 37.5% of Ant Financial’s pre-tax profits for one third of equity.