Technology

Ant Group’s IPOs suspended following disapproval from Chinese authorities

The company’s Shanghai IPO was put on hold Tuesday night after Chinese regulators met with key executives at the company, including Jack Ma, Eric Jing and Simon Hu. During the meeting, regulators decided that the Shanghai listing may no longer meet regulatory and disclosure requirements due to “recent changes in the fintech environment”.

This then prompted Ant Group to also suspend its listing in Hong Kong, which was scheduled for Thursday, Ant Group said in a statement. “Ant Group was informed today by the Shanghai Stock Exchange that our plan to go public with the Shanghai Stock Exchange will be suspended. As a result, Ant has decided that the listing plan on the Hong Kong Stock Exchange will also be suspended, ”we read.

In that statement, the Ant Group also apologized for any inconvenience the suspensions may have caused investors. “We will remain in close communication with the Shanghai Stock Exchange and regulators, and we will wait for them to update us on the progress of our offering and listing process, and we will inform them in due course. “

Setback for the Chinese fintech ogre

The company, which owns Alipay, had priced its shares at HK $ 80 and 68.8 yuan each, respectively, for the Hong Kong and Shanghai stock exchanges. Based on these prices, Ant Group was looking to raise around $ 17.2 billion in each exchange, according to the Wall Street Journal. This figure of $ 34.4 billion would have made it the largest IPO to date.

The company launched its IPO proceedings in July, saying at the time that a simultaneous listing in Shanghai and Hong Kong would help it boost domestic demand and facilitate its expansion into global markets alongside its partners.

Along with Alibaba, which owns a 33% stake in Ant Group, the two companies have sought to expand Alipay’s global presence in recent years through various initiatives, including a three-year plan to add 40 million suppliers. Chinese services on the mobile payment platform.

Last November, Ant Group also made Alipay available to foreign visitors to China. It was the first time that the electronic wallet could be used outside its domestic population to pay for goods and services. Previously, only Chinese bank account holders could use the platform.

Alipay currently has over 1.2 billion users and can be used to pay for a variety of services within the app, including cab rides, hotel room reservations, and movie tickets.

Source: .com

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