- Ant Group’s historic US$35 billion IPO is attracting unprecedented interest from retail investors in Shanghai and Hong Kong.
- Jack Ma’s financial services company has absorbed more than $3 trillion in orders from individual investors in its dual listings in Hong Kong and Shanghai.
- Regulatory documents show that the total amount of bids in some areas of Shanghai is approximately 1
- Shanghai’s oversubscription reached 872 times, and half of Hong Kong’s bids reached 389 times the bid.
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Ant Group’s goal is to raise more funds in IPOs than any other company in history, and IPOs are stimulating the same unprecedented demand from retail investors.
This financial services company is a branch of Jack Ma in the Alibaba empire. It has received more than $3 trillion in orders from retail investors in its listings in Hong Kong and Shanghai. Regulatory documents show that the Shanghai portion of the IPO raised approximately RMB 19.1 trillion (US$2.9 trillion) in offers. This amount exceeds 872 times the stock supply on the exchange.
A person familiar with the matter told Reuters that the Hong Kong initial public offering raised 1.3 trillion Hong Kong dollars (US$168 billion). This is approximately 389 times the available share to be set. As Hong Kong’s second largest debut, Hong Kong stocks also received nearly twice the bid.
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Bloomberg reported that the interest in the company’s debut was so great that the platform of a brokerage firm collapsed.
Ant Financial will raise US$34.5 billion in two issuances in November, breaking the IPO transaction record set by Saudi Aramco last year. The listing may make Ant Financial’s valuation exceed US$313 billion. The company is scheduled to start trading in Hong Kong on November 5. It is not clear when the stock will start trading in Shanghai.
The wave of retail demand shows that individual investors are not delayed because of the many risks that companies face. On the one hand, it was reported that the IPO was postponed earlier this month after the Chinese market regulator investigated the company’s potential conflict of interest. The China Securities Regulatory Commission investigated whether Ant Financial’s flagship platform Alipay is the only channel for retail investors’ initial public offerings.
Ants are also facing censorship in the United States. According to Reuters, the State Council recommended adding the company to its trade blacklist at the beginning of this month. According to reports, Chinese hawks in the Trump administration want to curb the motivation of American investors to participate in the company’s IPO.
This move has also intensified a series of radical trade measures, keeping the Sino-US tensions at a high level. If President Donald Trump is re-elected, then ants will become the target of continued investigations by the United States.
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