Ant group to raise $ 34.5 billion in biggest IPO of all time

The Ant Group logo and the Alibaba Group logo are displayed at the company’s headquarters in Hangzhou, China.

Qilai Shen | Bloomberg Getty Images

Ant Group will raise $ 34.5 billion in its dual initial public offering (IPO) after setting its share price on Monday, making it the largest listing ever.

The Chinese financial technology giant previously said it would split its stock issuances equally in Shanghai and Hong Kong, issuing 1.67 billion new shares at each location.

The Shanghai-listed shares of Ant Group will be priced at 68.8 yuan. According to the exchange rate listed in the official filing, the issuance of 1.67 billion shares would increase 114.94 billion yuan, or $ 17.23 billion.

Hong Kong-listed shares have been valued at 80 Hong Kong dollars each, ranging from $ 133.65 billion to Hong Kong dollars or 17.24 billion dollars.

Depending on demand, the so-called over-allotment option is exercised, with that list likely to come down to just under $ 34.5 billion, with that list likely to be high. This makes it the largest IPO ever, surpassing previous record holder Saudi Aramco, raising just over $ 29 billion.

Ant will be valued at $ 313.37 billion based on pricing, which is larger than some of the largest banks in the US, including Goldman Sachs and Wells Fargo.

According to regulatory filings, Ant Group expects to start trading in Hong Kong from 5 November. The company has not revealed when its Shanghai shares will start trading.

The Chinese company has previously stated that strategic investors have agreed to subscribe to 80% of the company’s Shanghai-issued shares. Alibaba has agreed to buy 730 million A-shares through its subsidiary, Zejam Tall Technology, which are yuan-denominated shares of Chinese companies listed on mainland exchanges. This will allow Alibaba to retain its approximately 33% stake in Ant Group.

The price of the ant comes after regulators in mainland China and Hong Kong gave the green light for listing last week.


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