IPO suspension of Ant 2.1 trillion

After the IPO was suspended, the probability of ant group’s IPO restart in the short term became smaller, and the exit of the original shareholders was also delayed
The sharp contrast between the quick and the one night stop makes the unicorn company stand on the front line. Figure / IC
Reporter Yang Xiuhong and Huang Huiling of Finance and Economics
Editor Lu Ling
Ant group (688688. SH), which was expected to win the world’s largest IPO, has experienced sudden changes. As a result, 2.1 trillion yuan of wealth feast has been drawn to rest.
In the autumn of 2020, ant group first pushed forward the IPO process at an astonishing speed and got the token of listing on the science and technology innovation board, with an estimated value of 2.1 trillion yuan. Then, on the eve of the listing on November 5, the tuyere suddenly changed and the IPO stopped abruptly.
The sharp contrast between the quick and the one night stop makes the unicorn company stand on the front line.
“Ant group has an annual profit of over $2 billion, and it doesn’t look short of money. One of the factors behind the choice of IPO Financing this year may be driven by investment shareholders. ” Zhang Xiaorong, President of the Institute of deep science and technology, told Caijing.
“For those who are in a hurry (to promote the listing of ant group), some people may put leverage into it. If they don’t go public, they can’t realize it, and they have to pay the interest.” An industry observer also told Caijing that “these people are really ants, but they are in hot pot.”
A professional in the financial field told Caijing that the promotion of listing by investment shareholders may be a secondary factor. One of the main reasons for ant group’s rapid IPO this year may be due to the demand of the domestic capital market for the external display of registration system, that is, not only overseas markets can allow large-scale innovative unicorns to be listed, but also the domestic capital market Pieces.
The IPO of ant group has been suspended. In addition to the new regulations on online loans issued by the regulatory authorities, it will have an important impact on the company’s business and valuation. Some people in the industry believe that this may also involve the game between the shareholders of ant group and all parties, and the penetration fog in the huge shareholder group of ant group.
“The original shareholders of ant group can be regarded as luxurious, which can be divided into three categories: the first is Ali family and their” relatives and friends “; the second is domestic investment institutions with strong strength; the third is some top overseas investment institutions, such as Singapore Investment Company, Malaysia Treasury holdings, Temasek, etc Zhang Xiaorong said: “the investment of these institutions often amounts to hundreds of millions.”
In addition, “ant group’s shareholder background is more complex, and the final penetration problem behind its huge shareholder group is not clear.” The financial professionals said.
In this regard, Liu Feng, chief economist of galaxy securities, once pointed out that “the basic condition for the effective operation of financial markets requires information symmetry, but investors and financiers naturally have asymmetric information. Therefore, we need to improve laws and regulations to make information transparent. ”
In an interview with the finance and economics reporter, Liu Feng said: “ant group is a good company with innovative ability. The loan mode provided by Alipay has benefited more people. But at the same time, its online loan business risk also needs to be prevented. At present, the new regulation of online loan issued by the regulatory layer is just to prevent the outbreak of large financial risks in the online loan industry. ”
When the realization of the original shareholders’ wealth is hindered, a large number of investors who participate in the subscription of ant group’s strategic placement fund are struggling to redeem the funds within the validity period. Some investors indicated that they would resolutely redeem the funds, while others realized that the profit of the strategic placement fund depended on how 90% of the fund was invested, rather than 10% of the ant group.
After the IPO was stopped, the probability of ant group to restart IPO in the short term became smaller, and the exit of original shareholders was delayed. Many financial people interviewed by Caijing said that in the short term, it is difficult to restart the IPO of ant group. At present, it is difficult to judge how long it will take for ant group to restart its IPO.
A few days ago, Fang Xinghai, vice chairman of China Securities Regulatory Commission, said that when ant group will be listed depends on how the government reorganizes the regulatory framework for financial technology enterprises, and also on how the enterprises respond to changes in the regulatory environment.
A senior person in the securities industry told Caijing that if you are a value investor, you don’t have to worry about when ant group will be listed.

1 Response

  1. Veronica says:

    For many people, the listing of Ant Financial is a big surprise. In early November, Mr. Ma vowed in Shanghai that Ant Financial’s IPO, the world’s largest, would ‘almost change the global financial landscape.’

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