October 20, 2020

Ant Group ‘has China nod for Hong Kong leg of $48b dual listing’

By ellen

HONG KONG • Investor Jack Ma’s Ant Group has won key approval from the China Securities Regulatory Commission (CSRC) for its listing in Hong Kong, paving the way for what could be the world’s biggest initial public offering, said people familiar with the matter.

The CSRC gave Ant the green light to seek a listing hearing with Hong Kong Exchanges and Clearing as soon as yesterday, the people said, asking not to be identified as the information is private. Ant has already won approval from the Shanghai exchange for its onshore listing.

The IFR reported the approval and hearing date earlier yesterday. A representative for Ant declined to comment, while a representative for CSRC did not respond to a request for comment.

The nod from China’s securities watchdog came later than expected, stirring speculation that Ant’s initial public offering (IPO) was running into roadblocks. The firm could raise about US$35 billion (S$47.5 billion) in a dual listing in Hong Kong and Shanghai at a valuation of at least US$280 billion.

Ant’s IPO could be the biggest in the world, surpassing Saudi Aramco’s record US$29 billion sale. Ant will not seek cornerstone investors for Hong Kong.

The Hangzhou-based firm plans to issue new stock equal to 11 per cent to 15 per cent of its outstanding shares and split the float evenly between Hong Kong and Shanghai.

BLOOMBERG