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Deepti Sri · · 1 min readReport: Ant Group’s valuation may be slashed by 60% upon listing
“Ant Group could list its shares by the end of this year, though the Chinese fintech giant faces a 60% slash in valuation,” Bloomberg reported, citing analysts from brokerage firm Sanford C. Bernstein & Co.
Details:
- Ant Group’s valuation may be revised to US$120 billion upon listing, down from a previous estimate of US$320 billion before the firm scrapped its record IPO in November 2020, the report noted.
- The company may also have to invest 30 billion yuan to 40 billion yuan (US$4.7 billion to US$6.2 billion) into its consumer finance unit to fuel credit growth.
Context:
- The report comes months after Chinese authorities conducted a probe into Ant Group’s operations, which involved an inspection of disclosures at the time of its filing, among other issues.
- Ant Group agreed earlier this year to a restructuring plan that would turn it into a financial holding company.
Editing by Miguel Cordon and Jaclyn Tiu
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