Ant Group’s world record-setting IPO, scheduled to hold in Hong Kong
and Shanghai, has been suspended, according to a report credited to CNBC
news.
What we know
Both exchanges, located in Hong Kong and Shanghai, issued statements
to this effect. Alibaba, which has a majority stake of about 33% in Ant
Group, saw its shares fall; it lost more than 5% in U.S.
premarket
trading.
Ant Group’s controller, Jack Ma, Executive Chairman, Eric Jing, and
CEO, Simon Hu, were scrutinized by regulators in China, according to a
statement seen from the China Securities Regulatory Commission.
On Tuesday, the Shanghai Stock Exchange referred to the investigation, while explaining why it suspended the IPO.
Ant stated, “significant issues such as the changes in financial technology regulatory environment,” according to a CNBC translation of the statement from Mandarin.
“These issues may result in your company not meeting the
conditions for listing or meeting the information disclosure
requirements.”
What they are saying
A spokesperson for Ant Group apologised for the delay of its initial
public offering and further disclosed that the Group was working through
regulatory concerns with the Hong Kong and Shanghai stock exchanges.
“Ant Group sincerely apologizes to you for any inconvenience caused by this development,” the statement read. “We
will properly handle the follow-up matters in accordance with
applicable regulations of the two stock exchanges. We will overcome the
challenges and live up to the trust in the principles of stable
innovation; embrace of regulation; service to the real economy; and
win-win cooperation.”
What you should know
Recall that Nairametrics
broke the news about a week ago on the world’s payment juggernaut, Ant
Group, hoping to raise $34.5 billion in its dual initial public offering
(IPO) after setting the price for its shares, making it the biggest
listing of all in modern history.
- The Chinese financial powerhouse had earlier disclosed that it would
divide its stock issuance equally across Chinese major stock exchanges,
which include Shanghai and Hong Kong, issuing 1.67 billion new shares
at each of those exchanges.
- Ant Group’s Shanghai-listed shares were to be quoted at 68.8 yuan
each. The issuing of 1.67 billion shares would raise 114.94 billion yuan
or $17.23 billion.
- The Hong Kong-listed shares were priced at 80 Hong Kong dollars
each, raising 133.65 billion Hong Kong dollars or $17.24 billion.
- The listing was to produce a return of at least $34.5 billion based on possible demand.
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