After the suspension of listing, the focus of the market is: can ant group still be listed? Do the shareholders of ant group have any chance to cash in the capital market?
Many interviewees told Caijing that behind the IPO and suspension of listing of ant group, there is a big game between shareholders and all parties involved.
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.
The penetration of ant group’s large shareholder group may also become a problem that needs to be solved when it meets the listing conditions in the future.
“The ultimate equity penetration map may not be made public, but regulators need to master this information,” the financial professionals told Caijing According to the current technology, equity penetration is complex, but not impossible to implement. From the experience of overseas mature markets, equity penetration is relatively clear, but in our country, there are still many ways to go. In its view, in recent years, a large number of reduction and Realization of the company after listing is one of the reasons that affect the company’s difficulty in becoming bigger and stronger and the growth of China’s capital market.
As the huge IPO project with a market value of 2.1 trillion was suspended, the dream of wealth expected by the original shareholders and employees of ant group was temporarily stranded.
According to the public information of ant group, from 2015 to 2018, the company conducted several financing.
The round a financing took place from June to August 2015. At that time, 12 investors, including the National Council of social security fund, Shanghai Zhongfu equity investment management center, Beijing China Post investment center, China Life Insurance, China Pacific Life Insurance, Xinhua Life Insurance and Chunhua capital, participated in the financing of ant group. These shareholders contributed 19.2 billion yuan in total. After the completion of the financing, the company’s post investment valuation is about 260 billion yuan.
In May 2016, ant group conducted round B financing. At that time, 16 investors, including Zhifu (Shanghai) investment center, China Life Insurance, Shanghai Qihong investment center and China Gold Jiazi, participated in the round of financing, with a total investment of 29.1 billion yuan. After the completion of the financing, ant’s post investment valuation is about 390 billion yuan.
Ant group has conducted two rounds of financing at home and abroad in 2018. Overseas, ant international has introduced 45 overseas investment institutions including Temasek. Ant international has issued 1.838 billion shares to these institutions with a transaction consideration of 10.3 billion US dollars. In China, it raised 21.8 billion yuan from Beijing innovation and growth enterprise management company, China Pacific Life Insurance, China Life Insurance, Beijing qianshun investment company, etc., and the post investment valuation rose to 960 billion yuan, equivalent to about 150 billion US dollars.
According to the investment of round a investors and the final valuation of ant group, if ant group can be listed successfully this time, the investment income of round a investors is expected to reach 10 times in five years, from 19.2 billion yuan to 192 billion yuan.
For those employees who expect to rely on equity incentives to gain value-added assets, millions of wealth has been temporarily destroyed.
In the prospectus, ant group had planned to implement equity incentive plan for employees. Among them, it is planned to use no more than 914 million shares for employee incentive in the next four years by means of additional issuance or repurchase after listing, of which, the A-share restricted stock incentive plan will not use more than 822 million shares, and the H-share incentive plan will use no more than 92 million shares. At the same time, the A-share restricted stock incentive plan will also include no more than 396 million shares of Hangzhou Junhan.
According to the issue price of 68.8 yuan / share of a shares and 80 Hong Kong dollars / share of H shares of ant group, the market value of these proposed incentive shares is expected to reach 90 billion yuan.
Assuming that all the shares are granted to the current 16600 employees of ant group, each of them can get 5.4 million yuan. For executives with larger holdings, the losses are much higher than the average.
On the eve of the listing, investors in the last round of trading may be the least disappointed group among ant group shareholders.
On the evening of November 3, after ant group was suspended from listing, the issue of refund of investors’ subscription funds was also put on the agenda.
The next day, ant group announced that the applied share proceeds (together with 1.0% brokerage commission, 0.0027% SFC transaction levy and 0.005% Hong Kong stock exchange transaction fee) for the Hong Kong public offering will be returned in two batches without interest.
On the evening of November 5, ant group announced that the issuer and the joint lead underwriters will return the investors according to the subscription funds of new shares paid by investors and the corresponding brokerage commission for new shares placement (if any), plus the bank deposit interest for the same period. The issuer and the joint lead underwriters will start the refund procedure on November 6, 2020, and the relevant funds will be returned on November 9, 2020. The shares subscribed by investors will be cancelled on November 6, 2020.
Investors who won the lottery have different reactions to this. Some investors said that Daxin ant group paid 34400 yuan in the first lot, which is expected to double after listing. Compared with the current refund, this expectation is a little big. However, some investors are more happy: ant group’s listed share price performance may not be as expected after encountering supervision. If it breaks after listing, the loss will be greater.
As for the exit of the original shareholders, a senior securities industry personage told Caijing, “if you are a value investor, you don’t have to worry about when ant group will be listed. There is a valuation method, if the company can not be listed, do you buy it? If you don’t buy it, it’s not a value investment. “
Reprint indicated source：Spark Global Limited information