Beijing, Oct 22 (efe-epa).- China’s Ant Group, the fintech arm of e-commerce giant Alibaba, will make its initial public offering in the Shanghai Stock Exchange STAR Market next week in a debut that could raise around $200 billion.
Ant Group will make its stock exchange debut with the issuance of up to 1.67 billion Shanghai-listed A shares, the company said in a letter to the Chinese exchange on Thursday.
On Wednesday, Ant Group received approval from the China Securities Regulatory Commission to have its shares listed on the Shanghai Stock Exchange’s STAR market, dubbed the Chinese Nasdaq, and is also seeking to list simultaneously in Hong Kong. It has not yet announced a date.
The commission on Oct 19 approved the listing of the financial tech firm in the Hong Kong stock exchange.
In a letter to the Hong Kong Stock Exchange on Thursday, Alibaba Group said that the value of Ant Group had risen to between $380 billion and $460 billion.
Chinese financial portal Caixin said that the subscription of shares would begin on Oct.29, and the payment of the subscribed shares will complete Nov.2.
Regarding its debut in the Hong Kong Stock Exchange, Alibaba announced in a statement to the Hong Kong exchange on Thursday that it will subscribe to 730 million of the 1.67 billion A shares of Ant Group during the operation.
Ant Group, which was founded in 2014 and was formerly known as Ant Financial, will become the first privately owned company to be listed simultaneously in Shanghai and Hong Kong.
According to the reports presented, the company intends to use the funds it raises through the IPO to expand its user base and digital services, as well as to develop other services such as cross-border payments.
Ant’s operating income between January and September reached 118.19 billion yuan ($17.74 billion), a year-on-year increase of 42.56 percent.
Alibaba has held a 33 percent stake in Ant Financial since September 2019.
Until then, the fintech arm paid 37.5 percent of its pre-tax profits to the parent company as a fee. EFE-EPA