There will be approximately 3.34 billion shares on sale, which would account for 11% of Ant Group’s outstanding stock. Follow him on Twitter for more updates! Professional clients can lose more than they deposit. Nonetheless, Ant's IPO could have boosted Alibaba's profits at a crucial time. Ant Group, the Alibaba (NYSE:BABA) -backed fintech company that owns the digital payments platform Alipay, will soon go public in one of the … Ant Group is expected to raise more than $34 billion from its IPO, which would make it the largest-ever market listing – overtaking Saudi Aramco. Log in to your account now to access today’s opportunity in a huge range of markets. However, two days before it listed, the Shanghai Stock Exchange announced that the IPO would be suspended due to regulatory issues. Past performance is no guarantee of future results. After this announcement, Ant Group suspended the Hong Kong listing itself. Initial public offerings (IPOs) aren’t always available immediately for retail investors, but you can trade straight away with our derivative products. Today, we're talking about whether Ant Group stock is a buy after its IPO. The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Those spin-offs could boost Alibaba's profits and cash flows, but Ant's failure could curb the market's appetite for future offerings. Ant, which is affiliated with e-commerce giant Alibaba Group Holdings Inc. BABA, … Ant Group has also sought to go beyond retail transactions, into peer-to-peer payments, bank transfers and standing orders for financial services and utility bills. Ant Group is expected to raise more than $34 billion from its IPO, which would make it the largest-ever market listing – overtaking Saudi Aramco. Let's conquer your financial goals together...faster. New client: 0800 1953100 or newaccounts.uk@ig.com, Marketing partnerships: marketingpartnership@ig.com, IG | Sitemap | Terms and agreements | Privacy | IG Community | Cookies | Investors | Modern slavery act. Start trading today. Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Alibaba generates most of its revenue and its profits from its core commerce business -- but the segment's margins have been contracting as it relies more heavily on lower-margin businesses (like brick-and-mortar stores, cross-border marketplaces, direct sales platforms, and its Cainiao logistics network) to boost its total revenue. Then, the business has to prepare a registration statement to file with the appropriate exchange commission. In the first six months of fiscal 2021, Alibaba's stake in Ant generated 7.72 billion yuan ($1.12 billion) in investment profits, or 10% of its net income. Plus, you’ll only need a small initial deposit – known as margin – to get full exposure. Ant's revenue rose 38% year over year to 72.5 billion yuan ($10.7 billion) in the first half of 2020. Alibaba's stock is also reasonably valued at 30 times forward earnings. If approved, the company will list a defined number of shares at a price set by an investment bank. Ant's stock listing in Shanghai and Hong Kong was suspended after Jack Ma, Alibaba's co-founder and one of Ant's top investors with an 8.8% stake, delivered a controversial speech at a government forum on Oct. 24. It’s in the process of setting up a consumer finance firm – alongside the Nanyang Commercial Bank and Alibaba-backed China TransInfo Technology – to increase its domestic presence. See you at the top! 1Based on revenue excluding FX (published financial statements, June 2020). Ma's speech seemingly angered those regulators, who then pulled the plug on Ant's IPO. However, investors should still see if Chinese regulators gradually tighten the screws on Alibaba and closely scrutinize its long-term expansion plans. The shares will be split evenly between Hong Kong and Shanghai. The Shanghai Stock Exchange suspended Ant’s blockbuster IPO late Tuesday, a day after four regulatory agencies summoned Mr. Ma and the company’s top two executives to a … Those growth rates are comparable to other hot fintech companies like Square (NYSE:SQ) and PayPal (NASDAQ:PYPL), which are both attracting big institutional investors as the rise of mobile payments, unpredictable macro headwinds, and low interest rates all make traditional banks less attractive. In 2014, Alipay was rebranded as Ant Group. Tax law may differ in a jurisdiction other than the UK. Get exposure to Ant Group when it lists with the world’s No.1 CFDs and spread betting provider.1. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The payment giant would invest approximately $1.2 billion for a 50% share, which could bring in as much as ten times more revenue. Alibaba is still growing at a healthy pace, and analysts expect its revenue and earnings to rise 44% and 31%, respectively, this year. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority. Ant Group’s IPO was expected to take place on 5 November 2020. The shares will be split evenly between Hong Kong and Shanghai. In the first half of 2020, Ant Group brought in $10.5 billion in revenues, thanks to its 1.3 billion active users, and over $16 trillion in payments. Ant is the financial technology company affiliated with Chinese e-commerce group Alibaba (BABA), which went public on the New York Stock Exchange in 2014 in what was also a … Alibaba holds a 33% stake in Ant, which owns the digital payments platform Alipay. Alibaba, which owns a … It was also set to be a defining moment for China's exchanges since Ant was exclusively listing the stock in China instead of the U.S. At the end of June, Alipay served 711 million monthly active users (MAUs), and its app processed 118 trillion yuan ($17.4 trillion) in payments over the past 12 months. But that’s not all. Ant Group is a Chinese online payment giant created by the founder of Alibaba, Jack Ma. FINANCE Exclusive: Ant Group’s IPO Debacle Triggers Tougher Scrutiny of New Listings By Liu Caiping and Tang Ziyi Companies seeking to float on the STAR Market and ChiNext board are facing tighter scrutiny of their listing documents as they go through the review process, sources told Caixin. But as soon as Ant Group does list, it will be available to trade with us via CFDs and spread bets. Returns as of 12/15/2020. Enjoy flexible access to more than 17,000 global markets, with reliable execution, Trade on the move with our natively designed, award-winning trading app, With 45 years of experience, we’re proud to offer a truly market-leading service. Tenpay, which includes WeChat Pay and QQ Wallet, served 940 million MAUs last year, according to a recent Ipsos survey. There will be approximately 3.34 billion shares on sale, which would account for 11% of Ant Group’s outstanding stock. Alibaba previously held an agreement with Ant that granted it 37.5% of the fintech affiliate's pre-tax profits. CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Ant Group is expected to raise more than $34 billion from its IPO, which would make it the largest-ever market listing – overtaking Saudi Aramco. Ant Group was expected to issue roughly 1.67 billion shares at IPO which would have raised 114.94 billion yuan or $17.23 billion based on the exchange rate in the filings. Ant will announce the IPO's … Many investors likely expect Ant to generate returns that are similar to those of those two fintech leaders, if not better. Square went public five years ago, and its stock has risen more than 22 times from its IPO price. Its Tmall and Taobao marketplaces will continue locking in Chinese shoppers, and Alibaba Cloud will remain Asia's top cloud infrastructure platform. Will Alibaba's Cloud Business Ever Generate a Profit? GUANGZHOU, China — Ant Group has received approval from the Hong Kong stock exchange for its highly-anticipated initial public offering (IPO), clearing the … Ant Group, the financial affiliate of Ma's e-commerce company … China halts $37bn Ant Group IPO, citing ‘major issues’ Shanghai and Hong Kong stock exchanges postpone listing two days before trading was due to start. By continuing to use this website, you agree to our use of cookies. Ant was expected to be the world's largest IPO, with a valuation of over $300 billion. It is unclear when the IPO will be rescheduled. Some facts about the Ant Group IPO: Ant Group was expected to raise $34.5 billion in the initial IPO across the Shanghai and Hong Kong stock exchanges . The Wall Street Journal reported that Chinese leader Xi Jinping personally made the decision to halt the initial public offering of Ant Group. The shares will be split evenly between Hong Kong and Shanghai. Its net income rose 21% to 21.9 billion yuan ($3.2 billion). Stock Advisor launched in February of 2002. Ant Group’s share price for its Hong Kong listing is set at HK$80 (£7.93), while its Shanghai listed stock will start trading at 68.8 yuan (£5.72). 2Tax laws are subject to change and depend on individual circumstances. But now, its collapse will cost its underwriters millions of dollars in fees, and a new IPO could take months to file. Alibaba's (NYSE:BABA) stock recently tumbled after Chinese regulators derailed the public debut of its fintech affiliate Ant Group. Ant Group’s monster $30 billion IPO was postponed. Due to the increasing number of Chinese citizens travelling the world, Ant Group has started to consider expansion into Europe and the United States – largely by the acquisition of WorldFirst in the UK and a partnership with Barclaycard. All trading involves risk. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Chinese regulators had already been scrutinizing the ability of Alipay and Tencent's (OTC:TCEHY) Tenpay, which hold a near-duopoly in China's digital payments market, to disrupt the country's mostly state-backed banking sector. Market data powered by FactSet and Web Financial Group. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. .tb_button {padding:1px;cursor:pointer;border-right: 1px solid #8b8b8b;border-left: 1px solid #FFF;border-bottom: 1px solid #fff;}.tb_button.hover {borer:2px outset #def; background-color: #f8f8f8 !important;}.ws_toolbar {z-index:100000} .ws_toolbar .ws_tb_btn {cursor:pointer;border:1px solid #555;padding:3px} .tb_highlight{background-color:yellow} .tb_hide {visibility:hidden} .ws_toolbar img {padding:2px;margin:0px}, Learn how to trade and invest in Vodafone Vantage Towers shares with IG, Learn more about CFD trading and how it works, Learn how to trade and invest in ByteDance (TikTok) shares with IG. The rejection comes as Beijing signals its determination to rein in private companies. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. An IPO occurs when a company decides to start selling its shares to the public. Ant, the financial technology company affiliated with Chinese e-commerce group Alibaba , plans to list simultaneously in Hong Kong and Shanghai. That's certainly dire news for Ant Group, Jack Ma, and investors seeking a piece of the action, but was Alibaba's stock unfairly punished for Ant's suspended IPO? We use a range of cookies to give you the best possible browsing experience. Exchanges. @themotleyfool #stocks $BABA $EBAY $TCEHY $PYPL $SQ, Here's What's Behind Alibaba's Slumping Stock Price, 3 Top Large-Cap Stocks to Buy in December, Alibaba Hasn't Given up on This High-Growth Market, President Trump to Sign Bill That Could Kick Chinese Stocks Off U.S. For more info on how we might use your data, see our privacy notice and access policy and privacy webpage. Therefore, any scrutiny of Ma could still impact Alibaba -- which already faces potential antitrust probes regarding its leading position in China's e-commerce market. Leo is a tech and consumer goods specialist who has covered the crossroads of Wall Street and Silicon Valley since 2012. Ma criticized China's financial regulators, claimed many of the country's banks operated like "pawn shops" with their collateral standards, and he declared that China needed a new financial platform that would extend credit to lower-income customers who lacked sufficient collateral. Jack Ma no longer leads Alibaba as its CEO or executive chairman, but he still holds a large stake in the company he co-founded over two decades ago. The shares will be available for sale through the chosen stock exchange. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. That means BABA stock acts as an Ant Financial IPO proxy. Ant Group, the Chinese financial services company controlled by Alibaba founder Jack Ma, is set to raise a gargantuan $34 billion in what would be the world’s largest initial public offering. The delayed public debut of Ant Group would be a blow to investors who were poised to benefit from what was supposed to be the largest IPO ever, including Alibaba. The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Alibaba, the NYSE-listed Chinese e-commerce giant, holds a 33% stake in Ant Group. By the end of 2006, 300,000 companies were using Alipay to facilitate online transactions. PayPal was spun off from eBay (NASDAQ:EBAY) as a separate company in 2015, and its stock has risen about 460% over the past five years. Trade Ant Group shares as soon as they list with spread bets and CFDs, Get full market exposure for just a small initial deposit – known as margin, React to breaking news with our in-platform Reuters feed. 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