Chinese reg' grants green light to Ant Group’s Shanghai IPO

Chine
On the 10/22/20 at 7:43AM

by

Capucine Cousin

Ant Group has received approval from the Chinese regulatory for its initial public offering in Shanghai and Hong Kong, it announced on Wednesday. The Chinese financial firm, which owns the online payment giant Alipay, plans a double listing in Shanghai and Hong Kong. It plans to sell 1.67 billion A class shares at its IPO on Shanghai stock exchange, where it will be listed on the Star Market platform created in 2019.

It also released its latest financial results on this occasion. Its operating profit came to CNY 118.2bn (almost €15bn) in the first nine months of the year, a 42.6% year-on-year increase. Over the same period, its net profit came to CNY 69.5bn, up 74.3%.  Its parent company, the Chinese e-commerce company Alibaba, is expected to subscribe 730 million class A shares as a strategic investor. The shares’ offering price is expected to be announced on 27 October.

According to Bloomberg, Alibaba’s financial arm plans to raise $35bn (€30bn). That would make it the biggest IPO ever.