Ant Group to raise $34.5b in record-breaking IPO

The fintech company will issue 1.67 billion new shares at HK$80 (US$10.32) a piece to raise HK$133.6 billion (US$17.2 billion) in Hong Kong, while selling the same amount of share in Shanghai at 68.8 yuan (US$10.26) a piece to raise 114.9 billion yuan (US$17.1 billion). Based on the pricing, Ant Group is valued at US$313.3 billion.

The Alibaba affiliate firm’s listing would exceed Saudi Aramco’s US$29 billion trade debut and become the largest IPO to date.

Ant Group is scheduled to begin trading in Hong Kong on November 5, but details for the Shanghai listing weren’t disclosed. Singapore’s sovereign wealth fund GIC and Temasek Holdings will participate in the listings in both markets.

Alibaba has agreed to buy 730 million A-shares via its subsidiary Zhejiang Tmall Technology, which allows the tech giant to retain its estimated 33% stake in Ant Group.

Meanwhile, the fintech giant will pay up to US$198 million in underwriting fees to bankers selling its shares in Hong Kong.

Other Chinese tech firms including NetEase and JD.com have already raised billions via listing on the Hong Kong exchange.

Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.75.

Currency converted from Chinese yuan to US dollar: US$1 = 6.71 yuan.