Tagged: Ant group

Wealth of all parties temporarily failed after the suspension

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. “

Strategic placement fund: from hot sale to class B exit

Ant group IPO derived from another drama, is the five innovative future strategic placement funds. “One yuan can be ant shareholder”, “star manager management” Rare themes, star fund managers and all-round publicity have jointly achieved this grand event of fund circle and become a rare opportunity for public funds to “break the circle”.
From the application, approval to issuance, the speed of the five funds can be described as “lightning”: on September 10, Huaxia, e-fund, Penghua, huitianfu and China Europe fund companies jointly reported the theme fund of “innovative future”, which attracted market attention. In just over a week, the five funds were officially approved.
Late in the night of September 22, five companies issued a prospectus together. At the same time, the official of the prospectus of ant group announced that the five funds will participate in the strategic placement of ant group together with the strategic placement fund previously established.
In the next few days, the fund advertisements were broadcast in the subway, bus station and building elevator in major cities. “You can see advertisements everywhere. It feels like the double 11 has been ahead of schedule.” One investor recalled.
In the early morning of September 25, the five funds were officially put on sale. A group of sales data with strong e-commerce color is: “it will sell 1 billion yuan in 2 minutes. In just one hour, the five funds sold 10.2 billion yuan. ” E-fund innovation, which ranked first in the future, will take the lead in reaching the sales quota of RMB 12 billion, and will close the issue ahead of schedule, “sold out in one day”.
It’s national day, and it’s going to cover the entire holiday season. The five ant strategic placement fund opened 118 live broadcasting projects in Alipay for the new development fund roadshow. It accumulated over 70 million people, and took turns to answer questions for investors during the holidays. The national day of Huaxia Fund was broadcast continuously for 8 days, with 4 hours of live broadcast every day, while huitianfu fund broadcast for 11 hours continuously on September 25. The fund manager also visited the live broadcasting room in person, setting a record for the longest live broadcast of financial management in a single session.
On the evening of October 8, all five innovation future funds were raised. According to relevant statistics, more than 10 million people have subscribed to the five funds, equivalent to 8 people buying every second. According to the total scale of 60 billion yuan, the fund’s per capita investment is only 6000 yuan, becoming the most inclusive new fund in history.
On November 3, the Shanghai Stock Exchange decided to suspend the listing of ant group. As soon as the news comes out, more and more fund investors ask for refund.
Most of the investors come to the ant fund. “If you don’t buy ant stock, the product will lose its core value. If the product has deteriorated, it should be returned.” Some investors have said so.
In fact, the “core value” understood by some investors is not the real “core value” of the fund. In terms of the proportion of the investment portfolio, only 10% of the participants participate in the ant battle, and where the remaining 90% is invested is the key factor that really determines the performance of the fund. And, this batch of fund is the partial stock mixed fund of stock investment not less than 60%. Therefore, they are essentially a high-risk product under the banner of ant strategic distribution.
Industry insiders have commented that looking back on the previous announcements of ant group and five funds, the label of “participating in ant battle allocation” only accounts for 10% of the actual portfolio, which is equivalent to using ant IPO to leverage investors’ expectations. With 10% of the position to pry a national high-risk investment feast, but also buried the expected failure after the hidden danger.
As high as investors’ expectations are, so are losses. According to the “Caijing” reporter’s sample survey of relevant fund investors (the sample number is more than 100), more than 70% of the funders think that the money should be refunded, and about 20% of the funders think that at least the purchase and redemption should be opened.
On the evening of November 5, the China Securities Regulatory Commission (CSRC) made a statement on this issue. Subsequently, e-fund, Penghua, China Central Europe, huitianfu and Huaxia announced the optimization plan: to apply for listing on the stock exchange to facilitate investors to sell on the spot.
It is difficult for investors to be satisfied with the plan of listing and transferring. Market participants believe that the business of custody transfer is strange and complex, which is too difficult for new fund investors to enter the market, and there is a high probability of discount after listing. Some public funders also said that at present, it can only be considered as a compromise scheme, and it is uncertain whether the redemption will be opened in the future.
Late in the night of November 10, five companies successively issued announcements and launched new plans. The new scheme adds class B shares, and investors can withdraw according to the net value of fund shares. At the same time, the five innovation future funds still apply for share listing and trading according to the statement on November 5.
At this point, investors’ withdrawal demands have been resolved, and the dispute about Innovation future fund has come to an end.
Looking from the rearview mirror, the Innovation future fund has not only lost the aura of participating in ant strategic placement, but also experienced a frenzy of “leverage” and pain of “deleveraging”.
After dropping expectations of participating in the ant battle, investors began to re-examine the five funds. Whether to go or not to stay, opinions began to diverge. “Finance and economics” reporter learned that some investors will resolutely redeem, “believe the fund manager’s words, it is better to buy open-end funds directly, there is no need to close for a year and a half.”. Others want to arbitrage, “buy it back after redemption, and you can earn the difference (because the secondary market is probably at a discount).” More people are beginning to realize that making money or not depends on 90%, not the 10% of the propaganda.
At present, the five funds have started to build positions. “As there is a one month exit option period from November 23 to December 22, positions should be controlled to cope with the pressure of redemption.” An analysis of fund practitioners.

The Ant incident is another “explosion”!

ONE

When are people the most uncomfortable?
It’s that one thing  your  almost got it, but it gets lost.
Almost got it. For example, if you buy a lottery ticket and the winning number is 99999, and you happen to be 99998, you are just one number short of it. Would you be so angry that you would see gold stars?
Gains and losses, for example, if you trade in stocks, 1 million to 10 million, and then fall back to 1 million. Although 1 million is still the same one million, it can’t go back to yesterday.
From this perspective, it is estimated that two people are quite depressed recently. Their lives have almost met with the super highlight again.

Yes, just a little bit, the cooked duck flies.
A little bit is a heavy mountain, and looking back, it’s like a lifetime!

TWO
Recently, Ant Group has exploded again.
A few days ago, everyone had heard that cheers of “freedom of wealth” broke out in the Ant’s building. However, in just a few days, the Ant Group “Ding Workers” with equity incentives can be said to have experienced sitting Ups and downs like a roller car.
Look, as Jack Ma’s Ant Financial was shut down by supervision, a large number of Ant employees unsubscribed from luxury cars and mansions yesterday:

The Hangzhou property market is also following the ups and downs, and even some netizens report that the property prices in Hangzhou have dropped drastically overnight. . .
I feel that this high probability should be a joke, so why is this! Even if it drops, at most the housing prices in the area of ​​Ant’s Hangzhou headquarters will drop.
There are really many similar jokes online.

After reading the post, I felt heartache for the ant brothers for a minute.
You know, according to the initial agreement, Ant Financial was originally scheduled to be officially listed on November 5; the employee reward system has been set; 16,000 employees will receive more than 8 million rewards per capita. It is equivalent to a large house of more than 280 square meters in Hangzhou.
Now, the big house of more than 280 square meters that had been acquired, suddenly disappeared, and it is also painful to think of it.
Of course, in fact, the ducks of the employees of Ant Group did not fly away. It was just a day of enjoying the feast, and it was likely to be pushed back.
Their plans for luxury homes and cars may have to be delayed for at least half a year.

THREE

In fact, it is not the Ant employees who have suffered, or the dozens of strategic leaders behind ants that have recently been rumored.
The list compiled by Caixin has recently been exposed. .

According to  the shareholder structure of Ant Group. This group of talents is the biggest beneficiary of Ant after listing. Some shareholders earn hundreds of millions and some earn tens of billions, including star Zhao Wei, who is also on this list.
However, the postponement of the listing this time, even if it makes a comeback half a year later, Ant IPO scale, valuation, and pricing may be readjusted.
You should know that in order to fundamentally eliminate the “hidden leverage risk of online loan companies”, the [Interim Measures for the Management of Online Microfinance Business] has now formally solicited opinions from the whole society.
The method clearly stipulates that the balance of online small loans through non-standardized financing such as banks shall not exceed 1 times the net assets. The balance of standardized financing through bond issuance and asset securitization (ABS) shall not exceed 4 times the net assets.
According to the implementation of this rule, if Ant Financial has 100 billion, then the scale of loan financing cannot be more than doubled, which is 200 billion;
Even if the issuance of bonds or asset securitization (ABS) is the loan model that Ants and the bank had done before (the United Bank lending model mentioned earlier in the article), it cannot exceed four times that is 500 billion.
This undoubtedly draws a high-tension business line for the ants and puts a risky curse on them. From then on, they will enjoy bank-level regulatory treatment in the future, no barbaric growth, the market’s expectations of their future profits will naturally come to light.
What’s more, the market has always valued Ant based on technology companies, but after this controversy, the market will inevitably have doubts: Is Ant an Internet company or a financial company?
If pricing is based on financial companies, then Ant’s valuation may not be more than 90 times the current value. You must know that leading retail banks such as China Merchants Bank, Ping An Bank, and Industrial Bank have valuations that are just over 10 times higher. Ant is obvious. Too high.
After this “Davis Double Kill”, I estimate that when it is actually listed, Ant’s valuation will probably be a discount or more than the current valuation.
Although the duck in my hand didn’t fly away, there was only half of it left. It didn’t feel good, did it?

FOUR

Things must be reversed. This is a cycle and a reincarnation.
This is the law of nature and one of Ren Zhengfei’s favorite theory: the principle of entrainment. Even Schrödinger, the great god of quantum mechanics, said something similar: “People live against the law of entropy increase, and life depends on negative entropy.”
How to combat the increase in moisture content?
The Chinese “Book of Changes” has two hexagrams, which are a good answer to this point.
The first hexagram is Qian’s hexagram: the sky is healthy, and the gentleman strives for self-improvement.
What do you mean?
After all, it means that people must always be diligent and humble. After all, there is no permanent strong, no permanent weak. Everyone has the opportunity to become rich, and everyone can always go downhill. The key to maintaining profitability lies in working hard all day long.
The second hexagram is Kun hexagram: the terrain is Kun, and the gentleman carries things with virtue.
This means that there is no personal success, only the success of the times. Time comes and the world is the same, and it is not free to transport heroes. Therefore, if you succeed, you must learn to share and give back to society.
So, how do fintech companies give back to whom?
In fact, the collective voice of the financial supervisory authority yesterday has already made it clear: Funds must go to the real economy, don’t play the “money makes money” game!
In terms of financial technology, on the one hand, it supports the financial industry to make reasonable innovations under the premise of controllable risks. At the same time, it insists that innovation is to serve and contribute to the real economy.
Indeed, there is no reason for love and hate in the world. All the results are the reincarnation of cause and effect, and the heaven is in balance.
Looking back, China is a truly fair society, because there is always an invisible hand maintaining social fairness.