China's Ant wins Hong Kong nod for $35 billion dual listing - sources

By Julie Zhu and Scott Murdoch HONG KONG (Reuters) - China's Ant Group Co Ltd [IPO-ANTG.HK] has won approval from the Hong Kong stock exchange for the offshore leg of its IPO, two sources said, clearing the last key regulatory hurdle to launch a dual-listing expected to be worth about $35 billion. Backed by Chinese e-commerce giant Alibaba Group Holding Ltd, Ant passed the hearing with the exchange's Listing Committee on Monday, the sources said, speaking on condition of anonymity because the information is not public

Reuters October 20, 2020 00:06:36 IST
China's Ant wins Hong Kong nod for $35 billion dual listing - sources

Chinas Ant wins Hong Kong nod for 35 billion dual listing  sources

By Julie Zhu and Scott Murdoch

HONG KONG (Reuters) - China's Ant Group Co Ltd [IPO-ANTG.HK] has won approval from the Hong Kong stock exchange for the offshore leg of its IPO, two sources said, clearing the last key regulatory hurdle to launch a dual-listing expected to be worth about $35 billion.

Backed by Chinese e-commerce giant Alibaba Group Holding Ltd, Ant passed the hearing with the exchange's Listing Committee on Monday, the sources said, speaking on condition of anonymity because the information is not public.

The fintech company plans to list simultaneously in Hong Kong and on Shanghai's STAR Market in the coming weeks, sources said, in what could be the world's largest IPO, surpassing the record set by oil giant Saudi Aramco's $29.4 billion float last December.

Ant and the Hong Kong Stock Exchange declined to comment.

The move comes one month after Ant won approval from the Shanghai Stock Exchange for the domestic leg of the dual listing.

The company also looks to receive the final nod from China's top securities regulator for its STAR IPO this week, said one of the people.

The Hong Kong meeting was a regularly scheduled committee hearing, during which the IPOs of several companies were discussed and approved.

The 28-strong committee contains a mix of bankers, lawyers, accountants and investors, and its approval is essential for any IPO candidate.

Ant plans to start a brief pre-marketing period this week before opening order books next week, one of the sources said. Its shares are likely to start trading "a few days" after the Nov. 3 U.S. presidential election, said the person.

After receiving initial feedback from potential investors, Ant looks to increase its offering size to $35 billion from up to $30 billion, targeting a valuation of about $250 billion or more, Reuters has reported.

Ant originally aimed to meet Hong Kong's bourse on Sept. 24 and launch the IPO after the week-long Chinese National Day holiday that ended on Oct. 8, sources previously told Reuters.

Last week, sources said the China Securities Regulatory Commission was probing a potential conflict of interest in the planned listing, delaying approval.

The regulator was looking into the role of Alipay, Ant's flagship payment platform, as retail investors' only third-party channel to buy into five Chinese funds investing in the IPO.

Ant aims to sell 10% to 15% of its enlarged share capital in the IPO, split evenly between Hong Kong and Shanghai. It does not plan to offer a cornerstone tranche in Hong Kong in anticipation of strong demand from institutional investors.

(Reporting by Scott Murdoch and Julie Zhu; Additional reporting by Keith Zhai and Fanny Potkin in Singapore and Sumeet Chatterjee; Editing by Richard Pullin, Christopher Cushing and Steve Orlofsky)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.