Alibaba’s affiliate Ant Group has filed to list its shares in Hong Kong and on Shanghai’s Star Market — China’s Nasdaq-like tech board — with a target initial public offering (IPO) of $30 billion.
The financial firm chose to conduct its IPO locally and is targeting a valuation of about $226 billion. The company has not yet disclosed details about the pricing of its shares.
Alibaba has a 33% stake in Ant which could probably be the largest IPO in history. Currently, the leading IPO record was set by the Saudi Arabian multinational oil and gas giant Saudi Aramco, which raised around $29.4B. Second is Alibaba, which raised $25 billion when it debuted on Wall Street in 2014.
Ant Group’s IPO in Hong Kong will be led by major institutions like JPMorgan, Morgan Stanley, Citigroup, and China International Capital Corp. In Shanghai, the IPO will be directed by major local investment banking firms like China International Capital Corporation and CSC Financial.
The firm expects to raise 48 billion yuan ($7 billion) in Shanghai alone.
As per Ant Group, IPO proceeds will be channeled toward expanding cross-border payments as well as to bolster its research and development capabilities. The move is a boost of confidence for Hong Kong reviving its status as Asia’s financial hub.
Ant Group Executive Chairman Eric Jing said,
The innovative measures implemented have opened the doors for global investors to access leading-edge technology companies from the most dynamics in the world.
Ant Group is the owner of popular payments and lifestyle app Alipay in China. It offers online financial services such as loans, investments, and credit scoring systems. The Hangzhou-based company is worth some $150 billion.
Alipay has more than 1 billion users, with 711 users active every month. The app has more than 2,000 partner financial institutions.