Ant Group Co, a financial-technology giant based in China, plans to raise at least US$34.4bn in what will be the world's biggest-ever initial public offering (IPO) in both Shanghai and Hong Kong.
Founded by Jack Ma of Alibaba fame, Ant is reportedly looking to raise US$17.2bn in each city, based on prices of 68.8 yuan and HK$80 per share, and the China Securities Regulatory Commission has formed a team to reassess the share sale plans.
The fintech giant could raise up to a maximum of about US$5.2bn more if underwriters exercise their option to buy up to 15% more shares in what is known as a 'green shoe' option, Bloomberg reported.
These figures would surpass the US$25bn raised in 2014 by Alibaba Group (NYSE:BABA) and the US$29.4bn raised by Saudi Aramco in the world's largest-ever IPO in 2014.
After including the new capital raised but before adding the green shoe, the tech giant would be valued at about US$313bn. In comparison, Mastercard had a market value of US$330bn as of Friday's close.
From finance to tech
Ant, which has been under state guidance since its planned IPO was called off in 2020 amid regulatory uncertainty, published an ESG report last week which indicates a clear shift to technology away from finance as the Chinese government wants big tech to do more in order to boost the economy.
The company said its research spending has grown 39% a year for three years, with more than 18.8 billion yuan (US$2.82bn) invested in 2021.
China abruptly suspended Ant's plans for a US$37bn IPO in November 2020 in Shanghai and Hong Kong days before the stock was expected to begin trading and launched a regulatory crackdown across the technology sector.
Ant is controlled by billionaire Ma who, after making a speech in Shanghai in October 2020 accusing financial regulators of hindering innovation, has seen authorities crack down on his empire and other tech firms, which also hit London-listed investors.