China’s Ant Group, the operator of digital payment platform Alipay, has filed for its IPOs in the Hong Kong stock exchange and in Shanghai’s Nasdaq-like STAR Market.
Ant plans to raise more than US$20 billion from the dual listing, which could even reach US$30 billion if market conditions allow, according to Reuters, citing people familiar with the matter. The report added that it could bring the company’s valuation to over US$200 billion.
Photo credit: Ant Financial
According to its prospectus, Ant has reached over one billion annual active users and 711 million monthly active users, as well as 80 million monthly active merchants. During the 12 months ending on June 20, it processed 118 trillion yuan (US$17 trillion) in transactions in mainland China and 622 trillion yuan (US$90 trillion) in the global market.
For the first half of the year, it generated 72.5 billion yuan (US$11 billion) in revenue, growing by 38% from 52.5 billion yuan (US$7.6 billion) a year earlier. It also recorded a profit of 21.9 billion yuan (US$3.2 billion) for the same period.
The company plans to use the proceeds to further digitize the service industry, enhance its research and development capabilities, and expand its cross-border payment and merchant services initiatives. Part of the funds will also go toward its working capital and general corporate purposes, according to the prospectus.
China’s tech giant Alibaba, through its subsidiaries Hangzhou Alibaba and Taobao Holding Limited, has a 33% equity interest in the fintech company.
Ant Group was valued at around US$150 billion in 2018 after it raised US$14 billion in a series C funding round from investors that included Singapore’s GIC, Temasek Holdings, Malaysia’s Khazanah Nasional Berhad, Warburg Pincus, Silver Lake, General Atlantic, and Canada Pension Plan Investment Board.
Currency converted from Chinese yuan to US dollar: US$1 = 6.90 yuan.
Editing by September Grace Mahino
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