Alibaba's payment arm Ant Group is eyeing initial public offerings (IPOs) on stock exchanges of Hong Kong Stock and Shanghai. The fintech arm of Chinese e-commerce giant Alibaba plans to first list in Hong Kong, owing to a smoother listing process, as soon as this year. It targets a valuation of over $200 billion, global news agency Reuters reported citing unidentified sources. The company will list on the Shanghai Stock Exchange's (SSE) STAR board and on the Hong Kong stock exchange (SEHK). The listing comes at a time when the entire world is reeling under the coronavirus crisis.
In what may be the world's largest IPOs in 2020, the fintech firm plans to sell between 5 per cent and 10 per cent of its equity via public issue, it added. Ant Group was valued at $150 billion after a 2018 private fundraising round. The company has not disclosed the amount of capital it hopes to raise through the issue.
The Chinese firm is 33 per cent owned by Alibaba Group Holding Ltd and is controlled by Alibaba founder Jack Ma. Ant Group is China's dominant mobile payments company, offering loans, payments, insurance and asset management services via mobile apps.
Ant Group, formerly known as Alipay, is an affiliate company of the Chinese Alibaba Group. It is the world's highest-valued FinTech company, and most valuable unicorn (start-up) company, with a valuation of $150 billion. In November 2019, the company announced raising $1 billion for a new fund, with the aim to expand the firm's investment activities in Southeast Asia. In January 2020, Ant Group applied for a digital banking licence in Singapore.