Ant Group will increase $ 34.5 billion and attain a price of over $ 313 billion within the largest preliminary public providing 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 is set to raise $ 34.5 billion for its double initial public offering (IPO) after setting the price for its shares on Monday. This makes it the largest listing of all time.
The Chinese financial technology giant had previously announced that it would split its share issue evenly between Shanghai and Hong Kong and issue 1.67 billion new shares at each location.
The Shanghai-listed Ant Group shares are valued at 68.8 yuan each. The issuance of 1.67 billion shares will raise 114.94 billion yuan, or $ 17.23 billion, according to the exchange rate reported in official records.
The Hong Kong listed stocks were valued at Hong Kong $ 80 each, raising Hong Kong $ 133.65 billion or $ 17.24 billion.
The listing will bring in just under $ 34.5 billion in total, with the possibility that that number will rise if the so-called over-allotment option is exercised based on demand. This makes it the largest IPO of all time, ahead of former record holder Saudi Aramco, who has raised just over $ 29 billion.
Ant’s valuation based on pricing will be $ 313.37 billion, higher than some of the largest banks in the US, including Goldman Sachs and Wells Fargo.
The Chinese company previously said that strategic investors have agreed to subscribe to 80% of the company’s shares issued in Shanghai. Alibaba, through its subsidiary Zhejiang Tmall Technology, has agreed to purchase 730 million A shares, which are yuan-denominated shares of Chinese companies listed on mainland stock exchanges. This allows Alibaba to maintain its roughly 33% stake in Ant Group.
Ant prices come after regulators in mainland China and Hong Kong gave the go-ahead for the listing last week.