Ant Group Will Push China IPOs to Record $75 Billion This Year

The blockbuster Shanghai debut of Jack Ma’s Ant Group Co. will push the value of new stocks in China to a record this year.

Ant Group -- which is also selling shares in Hong Kong -- is seeking to raise about 114.9 billion yuan ($17.1 billion) from the mainland leg of its initial public offering. That’s even before it opts to exercise a so-called greenshoe option, which would allow the firm to sell more stocks. Ant Group’s Shanghai listing will beat the previous record held by Agricultural Bank of China Ltd.’s 68.5 billion yuan debut in 2010.

The fintech giant’s debut will take the total value of new listings in Shanghai and Shenzhen to at least 503 billion yuan, surpassing the prior record of 491 billion yuan from 2010. That’s according to data compiled by Bloomberg based on the trading start date.

Ant Group Will Push China IPOs to Record $75 Billion This Year

China last year relaxed some of its strictest rules for initial public offerings on its smaller Star board in Shanghai, including allowing loss-making firms to sell shares and removing a cap on valuations. The moves make it easier for Chinese companies to tap the country’s capital markets, just as growing tensions with the U.S. on trade and technology divert Chinese firms from overseas exchanges.

Further changes are coming: earlier this month, China’s securities regulator said officials will push forward reforms to expand registration-based system to all IPOs “at an appropriate time.”

Ant Group Will Push China IPOs to Record $75 Billion This Year

Ant Group is scheduled to start trading on Nov. 5 in Hong Kong. The firm has yet to announce the listing date for its mainland shares but it’s expected to be similar.

©2020 Bloomberg L.P.

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