Media: fintech division of Alibaba plans to raise $ 35 billion during IPO

Ant Group’s valuation rises to $ 250 billion.

The fintech division of Chinese tech giant Alibaba Group – Ant Technology Group – has raised expectations for an IPO. Following the results of the public offering, the company intends to receive $ 35 billion in investments. Insiders told Bloomberg about this.

Earlier, representatives of the organization planned to raise $ 30 billion. According to sources, the Ant Group team, which is owned by billionaire Jack Ma, raised its expectations from an initial public offering amid the company’s valuation rise to $ 250 billion.

Bloomberg notes that the company’s IPO could become the largest ever. If the entire amount is successfully raised, Ant Group will be able to break all previous records of initial public offerings. Also, a successful IPO will open up the opportunity for the company to overtake many industry leaders in capitalization.


Rating of the largest IPOs. Data: Statista

As a reminder, Ant Group intends to get a double listing on Asian exchanges. Experts explain the choice of jurisdictions by a wider base of Asian investors and growing geopolitical risks for Chinese companies in America. The Shanghai Stock Exchange has already approved the listing of a fintech company. According to Reuters, Ant Group plans to discuss the placement with the Hong Kong Stock Exchange this Thursday. If all goes according to the plan, the IPO could take place as early as October 2020.

Ant Group derives most of its revenue from fast consumer loans. The company is also engaged in the insurance business and work with funds. In the first half of 2020, Ant Group earned $ 3.2 billion in profits on combined revenues of $ 10.5 billion. Revenues grew more than 1000% over the year. It was also reported before about the plans of the company to create a consumer lending practice.

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