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Collin Furtado · · 1 min readReport: Ant’s valuation could nosedive to $29b after turning into financial holding firm
“Ant Group’s valuation could plummet to as low as $29 billion after becoming a financial holding company that’s regulated more like a bank,” reported Bloomberg, citing its investment research arm.
Details:
- Due to new rules imposed by Chinese regulators, Ant Group’s revenue growth is expected to be in the lower teens compared to the 30% it posted in November 2020. This would drag down the company’s profit prospects, according to a senior financial analyst at Bloomberg Intelligence.
- The analyst added that Ant’s valuation could plunge from US$320 billion to anywhere between US$29 billion to US$115 billion – a figure that’s closer to the valuation of banks and other financial institutions.
Context:
- Recently, Chinese regulators asked Ant Group to overhaul its business into a financial holding company that could be regulated more like a bank.
- The fintech giant is reportedly exploring options for founder Jack Ma to divest his stake in the company and give up control.
Editing by Eileen C. Ang
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