Ant Group started small. Its name comes from its commitment to serve individuals and small businesses. But there is nothing modest about the Chinese fintech company’s Hong Kong and Shanghai dual listing. The initial public offering is expected to raise $30bn. Ant’s IPO will be the biggest of the year — perhaps of all time.
Ant Financial Services Group, as it was formerly known, is controlled by Alibaba founder Jack Ma. It is reported to be seeking a valuation anywhere between $200bn and $300bn. That is larger than most global banks. It is three to four times the size of Goldman Sachs’ equity value.
There is every chance Ant, which was formed when the popular Alipay payments app was split from Alibaba, will succeed. A Hong Kong listing will allow the company to enjoy the surge of mainland Chinese funds into markets and the liquidity of foreign investors. Listing on Shanghai’s Star market — China’s answer to the Nasdaq — will win brownie points with President Xi Jinping.