On Wednesday, the China Securities Regulatory Commission gave the green light to Ant Group’s listing of Dual Shanghai and Hong Kong to go ahead. The Hong Kong Stock Exchange also gave its approval for the offshore portion of the listing.
The Chinese financial technology giant, which owns 33% of Alibaba and is controlled by founder Jack Ma, also updated its IPO prospectus with information about the share structure.
It will split its stock issuances equally in Shanghai and Hong Kong, issuing 1.67 billion shares at each location. It is 11% of the total outstanding shares of the IPO. If the so-called aggregate option is exercised on the basis of demand, the number of shares may increase.
Ant Group will now go ahead with a roadshow for marketing the IPO to investors and fix the stock price on 27 October.
Strategic investors have agreed to subscribe to 80% of the company’s Shanghai-issued A shares. Alibaba has agreed to buy 730 million A shares through subsidiary Zhejiang Tmall Technology. This will allow Alibaba to retain its approximately 33% stake in Ant Group.
The Ant Group also released some updated financial figures for the first nine months of 2020. It says that its Alipay mobile payment app’s monthly active users have increased from 711 million in June to 731 million in September.
Revenue was 118.19 billion yuan ($ 17.73 billion), a more than 42% year-on-year increase.
The Ant Group listing may be one of the largest ever. Reuters has previously reported that listings could increase to $ 35 billion. An analyst previously told CNBC that Ant’s valuation could exceed $ 200 billion.