The double IPO of Ant Group brings in £26.44 billion and marks the largest listing ever.
The Chinese giant will issue 1.67 billion shares each in Shanghai and Hong Kong.
Ant Group could over-allot in order to raise even more than 26.44 billion pounds.
Ant Group said on Monday that its double initial public offering will raise a total of £26.44 billion. The company announced the price per share for 1.67 billion new shares to be issued simultaneously in Hong Kong and Shanghai. Ant Group’s double IPO will be the largest listing in history.
Ant Group announced that its shares are valued at £7.86 each in Shanghai. With the issue of 1.67 billion shares, the world’s largest financial technology company will raise £13.20 billion from its Shanghai listing.
In Hong Kong, its shares will trade at £7.91 sterling. By issuing 1.67 billion shares, Ant Group will raise a further £13.21 billion from its Hong Kong listing.
Ant Group may exercise over-allotment option
Depending on demand, the Hangzhou-based company could practice the over-allotment option. In this case, it is expected to raise even more than £26.44 billion from its double initial public offering (IPO).
At £26.44 billion, the Ant Group’s double IPO will pass Saudi Aramco, which raised nearly £22.22 billion last year. The IPO brings the Chinese giant’s valuation to £240 billion – a valuation higher than that of the largest American banks, including Wells Fargo and Goldman Sachs.
From the application for approval filed on Monday, no preliminary date was given as to when Ant Group is expected to begin trading in Shanghai. However, it will begin trading in Hong Kong on November 5.
Ant Group received approval for its listings from the regulatory authorities in Hong Kong and China last week. In an earlier announcement, the company said that strategic investors have already agreed to subscribe to 80% of its shares to be listed in Shanghai.
Online broker Futu commented on Ant Group’s pricing for its dual listing and said
“We accurately anticipated the huge interest in the Ant Group’s IPO and were subsequently able to secure HK$30 billion in financing for our clients”.
Alibaba maintains its 33% stake in Ant Group
Alibaba (NYSE: BABA) has also expressed interest in maintaining its 33% interest in Ant Group. The Chinese e-commerce giant will purchase 730 million A-shares in Ant Group through Zhejiang Tmall Technology (Alibaba’s subsidiary).
This was said by Alibaba founder Jack Ma in a statement on Saturday:
“This is the first time that the price of such a large quotation – the largest in human history – has been set outside of New York City. We didn’t dare think about it five years ago or even three years ago. But a miracle has just happened”.