Ant Group prices Shanghai IPO leg at 68.8 yuan per share

Marco Green
October 26, 2020

Jack Ma, the former English teacher who co-founded Alibaba Group Holding Ltd. with $60,000, is poised to become the world's 11th richest person after Ant Group Co. priced shares for a record initial public offering. While the pricing of the listing was determined on Friday night, according to Ma, the details of the pricing weren't disclosed by him even as it is likely to be out next week.

The listing will raise a total of just under $34.5 billion, with the possibility for that figure to go higher if the so-called over-allotment option is exercised, depending on demand.

Alibaba Group Holding Ltd., which was co-founded by Ma and now owns about a third of Ant, has agreed to subscribe for 730 million of the Shanghai shares, which will be listed in Shanghai under the ticker "688688", according to the prospectus. The IPO would also be the first simultaneous listing in Hong Kong and on the year-old STAR Market in Shanghai.

Books for the Shanghai leg of the float will open for one day on October 29.

Ma's 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai.

China's Ant Group has set the price of its A-shares at 68.80 yuan ($10.27) per share, according to an exchange filing.

Among them are Zhejiang Tmall Technology, a unit of Alibaba, which has committed to purchase 44% of the Shanghai float, according to Ant's updated prospectus.

The Chinese company previously said that strategic investors have agreed to subscribe to 80% of the company's Shanghai-issued shares. Ho, who invested $400 million in Ant two years ago, added that he's trying to secure a bigger allocation of the Hong Kong shares and that being able to invest in Ant "is priceless".

Ant did not immediately respond to request for comment on the Hong Kong timetable late on Saturday.

Other reports by Click Lancashire

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