Ant Group IPO postponed, Jack Ma in crosshairs

FAN Editor

Ant Group’s blockbuster initial public offering is on hold after media reports that Ant’s co-founder Jack Ma and two other executives have been summoned to meet with China’s central bank.

Continue Reading Below

Global Times, a China state-affiliated media outlet, tweeted that the Shanghai Stock Exchange suspended the upcoming IPO, but did not give a reason.

Ticker Security Last Change Change %
BABA ALIBABA GROUP HOLDING LTD 290.86 -19.87 -6.39%

Alibaba, which owns approximately one-third of the Chinese financial services giant, saw its shares fall sharply in U.S. trading, down nearly 8%.

ANT GROUP IPO PRICING ‘HISTORY’S LARGEST, SAYS ALIBABA’S JACK MA

The $34.5 billion IPO, which had been set for Nov. 5, is being postponed for changes in the “regulatory environment,” according to a statement from Shanghai’s Star Market.

“On November 2, 2020, Ma as controlling shareholder of Ant Group and Ant’s management team met with Chinese financial regulators,” Ant Group said in a statement obtained by the South China Morning Post. “Views regarding the health and stability of the financial sector were exchanged. Ant Group is committed to implementing the meeting opinions in depth and continuing our course based on the principles of: stable innovation; embrace of regulation; service to the real economy; and win-win cooperation. We will continue to improve our capabilities to provide inclusive services and promote economic development to improve the lives of ordinary citizens.”

The $34.5 billion IPO would value Ant Group at roughly $280 billion, making it among the largest companies in the world.

GOLDMAN SACHS JOINS ANT’S UP TO $30 BILLION IPO BANKING SYNDICATE, SOURCES SAY

At a financial technology conference in Shanghai on Saturday, Ma criticized Chinese banks, noting they operated like “pawnshops,” citing the collateral they require before a loan is made. Ma also advocated for financial reform, touting the benefits of big data, cloud computing and blockchain.

Ant Group, which was previously known as Ant Financial, was part of Alibaba before it became its own separate company, following a spin-off. It has its hands in a number of different financial services and is China’s largest digital wallet, with more than 1 billion users around the globe.

WHO IS JACK MA?

Earlier this week, Ant Group priced its IPO in a dual list, with its Shanghai stock priced at 68.8 yuan ($10.26) each, while shares on the Hong Kong exchange were priced at 80 Hong Kong dollars apiece ($10.32), according to filings on Monday.

CLICK HERE TO READ MORE ON FOX BUSINESS

Ant Group’s IPO would be the largest IPO ever, topping the IPO from Saudi Aramco, which raised $29 billion in 2019.

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

The Associated Press contributed to this story.

Free America Network Articles

Leave a Reply

Next Post

McKesson says potential opioid settlement proposal raised to up to $21 billion

November 3, 2020 By Nate Raymond (Reuters) – McKesson Corp <MCK.N> said on Tuesday it and two other drug distributors could be expected pay up to $21 billion for the potential settlement of lawsuits alleging they fueled the U.S. opioid epidemic. McKesson, along with AmerisourceBergen <ABC.N> and Cardinal Health <CAH.N>, […]