China’s Ant Group (螞蟻集團) could raise up to US$17.3 billion in the Shanghai leg of the likely US$35 billion dual listing, the world’s largest ever, after some large investors submitted bids in the range of 68 yuan to 69 yuan per share, people with knowledge of the matter said.
The simultaneous listing in Hong Kong and Shanghai of the financial technology giant, backed by e-commerce behemoth Alibaba Group Holding Ltd (阿里巴巴), would beat the previous largest initial public offering (IPO), Saudi Arabian Oil Co’s US$29.4 billion float in December last year.
The pricing for the Shanghai tranche of the IPO was decided on Friday, Alibaba founder Jack Ma (馬雲) said on Saturday, without disclosing the price.
“It’s the first time that the pricing of such a big listing — the largest in human history — has been determined outside New York City,” he told the Bund Summit in Shanghai, referring to Ant’s float as a “miracle.”
Later on Saturday, a person with direct knowledge of the matter said that many large Chinese fund managers had bid for Ant shares in the listing on the NASDAQ-style STAR Market in Shanghai at close to 69 yuan apiece.
At that price, Ant could raise up to 115.3 billion yuan ($17.24 billion) in the Shanghai tranche, valuing the company as a whole at up to 2.1 trillion yuan, before a 15 percent greenshoe or overallotment option is exercised.
Under local market rules, the final price for the IPO, which would also be the first dual listing in Hong Kong and on the year-old STAR, is based on guidance from large investors.
Ant declined to comment on the pricing.
The IPO would burnish the Shanghai-based exchange’s status as a fast-growing capital markets center, at a time when rising China-US tensions have triggered concerns about the prospects of listing of Chinese companies in New York.
Ant has chosen the stock code 688688 for its Shanghai listing, which for Chinese speakers combines two of the luckiest or most auspicious numbers, together symbolizing long-lasting prosperity and good fortune in Chinese culture.
Books for the Shanghai leg of the float would open for one day on Thursday.
Ant plans to sell up to 1.67 billion shares in the Shanghai float, which is set to be the biggest IPO in China, eclipsing the record set by Agricultural Bank of China’s (中國農業銀行) US$10.1 billion Shanghai float in 2010, according to Refinitiv data.
Strategic investors, whose investments in Ant’s STAR IPO would be locked up for at least 12 months, would account for 80 percent of the Shanghai float.
Among them are Zhejiang Tmall Technology Co Ltd (浙江天貓技術), a unit of Alibaba, which has committed to purchase 44 percent of the Shanghai float, according to Ant’s updated prospectus.
Ant aims to split the share sale evenly between Hong Kong and Shanghai, selling up to 11 percent of its enlarged share capital.
For the Hong Kong leg, Ant plans to open order books as soon as Monday and price the offering in the coming days, separate sources have said.
SETTING AN EXAMPLE: The commission suspended the bank’s two top executives as ‘a warning to all banks,’ while the fine is the biggest to be given to a bank in a single case The Financial Supervisory Commission (FSC) yesterday fined E.Sun Commercial Bank (玉山銀行) NT$20 million (US$693,698) over a theft scandal and punished the bank’s two top executives. A customer relationship manager surnamed Pan (潘) at the bank’s branch in Kaohsiung’s Fengshan District (鳳山) stole NT$140 million from 41 clients over the past seven years, the commission said. Pan secretly transferred the stolen money to accounts belonging to her and her family members by using clients’ debit cards, passwords or documents that were stamped using the clients’ personal stamps between July 2013 and June this year, the commission said. The commission suspended Ben Chen (陳炳良), the
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain the third-largest IC supplier this year, unchanged from last year, IC Insights said yesterday. IC designer MediaTek Inc (聯發科) is expected to become the 11th-largest, up from 16th last year, the semiconductor market research firm said. TSMC is expected to post US$45.42 billion in sales, up 31 percent from last year, IC Insights said in a report released on its Web site. TSMC’s sales growth is largely due to a surge in orders from Apple Inc and HiSilicon Technologies Co (海思半導體) — two of its major clients — which
HARD ASK: At a meeting held by the MOEA to talk about the RCEP trade deal, trade associations said that they expect the government to push for more free-trade deals Business representatives yesterday urged the government to slow the appreciation of the New Taiwan dollar, saying that some Taiwanese industries have been undercut by rivals due to unfavorable foreign exchange rates. The government should also assist local industries to expand their domestic market, and push for more bilateral trade deals so that Taiwanese companies can enjoy zero or preferential tariffs on exports, following the nation’s exclusion from the Regional Comprehensive Economic Partnership (RCEP) which was signed by 15 Asia-Pacific nations on Nov. 15, they said at a meeting with the Ministry of Economic Affairs (MOEA). Some participants said that the NT dollar’s
BREATH OF LIFE: The firm said the under-utilized plant should start mass production in the first quarter, timed to coincide with Intel Corp’s release of its Ice Lake server chip Hon Hai Precision Industry Co (鴻海精密) plans to assemble key components for Google servers at its plant in Wisconsin, people familiar with the matter said, finally breathing life into a factory that US President Donald Trump hailed as crucial to bringing manufacturing back to the US. The company has decided to locate production for this new contract at the existing complex rather than make the components at home or in China, the people said, asking not to be identified. The under-utilized plant should start mass production in the first quarter, timed with the release of Intel Corp’s Ice Lake server chips,