Ant Group may see IPO comeback after Shanghai land purchase

Analysts say that Ant Group may be hinting at the return of its IPO plans after an entity owned by the Alibaba-backed fintech giant and Chinese conglomerate Fosun won the rights for a plot of land in Shanghai, Pandaily reported.

Ant said that after the purchase is completed, it will acquire roughly 60,000 square meters of office space to bolster its presence in the city’s fintech and blockchain landscape. “The new site is expected to accommodate thousands of employees,” the report noted.

Alibaba also currently runs several businesses and processes out of Shanghai. This includes the headquarters of omnichannel retailer Hema Fresh and an R&D center in the city.

Ant’s US$37 billion IPO was suspended in late 2020, with regulators citing the company’s failure to meet listing qualifications or disclosure requirements as the cause for the block. However, it’s been reported that Ant may be given a second chance for a financial debut as China’s crackdown on tech eases.

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The development also follows Alibaba’s announcement saying that seven executives from Ant Group have exited its “partnership structure.” The shuffle included chair Eric Jing Xiandong and CTO Xingjun Ni.