Ant seeks tight control over IPO details, sources say

The fintech giant is also dividing up the underwriting for its potentially US$30 billion offering among a number of banks and discouraging them from working with its competitors, the sources added. The uncommon process has reportedly frustrated some bankers and investors and caused some manner of confusion in the market.

It was reported in August that Jack Ma’s Ant would be forging ahead with its dual listing in Hong Kong and Shanghai – potentially marking the largest debut worldwide – as early as this month.

Capital markets consultant Philippe Espinasse told Reuters that transactions of this size can warrant enforcing a tightly controlled process. “This is not only to ensure that the banks focus on getting the deal done, and getting it done well, but also to create a sense of competition both among the underwriters and investors,” he added.

Alibaba, in its US$25 billion trade debut in 2014, had followed a similar process, dividing up the work so that no single party had the full picture. In its second listing in Hong Kong, the ecommerce titan also made advisors sign non-disclosure agreements.

Ant’s move for control comes as the regulatory process for its dual listing marches quickly ahead. According to public filings, the Shanghai Stock Exchange cleared the listing in just 24 days, compared to the typical four months that most of the companies that had received approval in September have to wait. The report added that the Hong Kong exchange is about a month into its review, which also takes an average of four months.