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Ant Group IPO: probably the world’s largest public offering

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Miguel A. Rodriguez
Miguel A. Rodriguez
27 octubre 2020
Ant Group to raise $34.5 billion in record IPO

One of the most expected IPOs of this year is about to happen.  Jack Ma's company – Ant Group – is expected to complete the largest public offering, topping Aramco’s 2019 listing. But before everything happens, let's find out some things about Ant Group.

Ant Group formerly known as Ant Financial, is an affiliate company of Alibaba Group which managed to attract roughly 450 million active users or almost 58% of the online payment transactions made in China.

Ant Group’s IPO is here soon, and you can trade it! We’re giving you the best suite of trading tools to trade CFDs on Ant Group. Keep reading and find out how to get our free PDF report so you can have all the information you need!

Services

The leading service that Ant Group provides is mobile and online payment through Alipay.

Alipay was initially created as an escrow service for Alibaba to allow secure transactions on the website, gaining 711 million active users who are mostly based in China. In just one year, it generated $17 trillion in payments.

Huabei & Jiebei or Just Spend and Just Lend, have been created to help people who don't have liquid cash spend through Alipay. The company acts as a gateway, directing large amounts of cash flows, especially from banks. In just a year, 500 million people made loans through the platform.

Of course, like any other successful company, Ant Group was looking to expand internationally. In January 2017 the company announced that it is looking to pay $880 million to purchase MoneyGram International. But the deal didn't go through as it didn't receive approval from the Committee on Foreign Investment in the US due to national security concerns.

Ant Fortune & Yu'e Bao Money Market Fund were launched in 2013 and 2015 with the purpose of offering various products from over 80 Chinese fund institutions. Since 2017, financial institutions can publish content and sell their financial products using the platform.

Because innovation is what's driving Ant Group, they partnered up with Vanguard Group earlier this year. The partnership allows the US giant to pave its way into the Chinese financial sector.

Zhima Credit was created in 2015 as a service designed to run checks on transaction histories and uses data from third-party providers to see people's creditworthiness. If customers score high enough, they don't have to pay deposits on a lot of services. These can vary from renting a bike to booking a room at a costly hotel.

Xianghubao came to life in 2019, allowing people to pay a small fee every month for the health insurance of people needing treatments for illnesses like cancer, Alzheimer's, and Ebola.

When adding numbers, all these services have proven profitable. Last year, Ant's revenue came in at $17 billion, 40% higher than the figures posted in 2018. More than 50% of the revenue was generated by their first three services mentioned above.

For the first half of the year, Ant Group had revenues of $10.5 billion. The figures came in 38% higher than during the same period last year.

IPO Details

Ant Group is on its way to the largest public offering since Saudi’s Aramco hit the market. The Chinese conglomerate is looking to raise $34.5 billion on its initial public offering.

If everything goes smoothly, Ant Group's valuation will reach $313.37 billion, topping some of the largest American banks such as Goldman Sachs and Wells Fargo.

Ant is scheduled to set the price for its Hong Kong listing on Friday, according to people familiar with the situation.

Make sure you check out our special report that you can access from the Notification Centre. Download it for free and use our suite of integrated tools to trade CFDs on Ant Group’s IPO!

Sources: cnbc.com, thestreet.com, asia.nikkei.com

 

Esta información/estudio preparada por Miguel A. Rodriguez  no tiene en cuenta los objetivos específicos de inversión, la situación financiera o las necesidades particulares de una persona. El analista de estudios es, principalmente, responsable del contenido de este informe de estudio, en parte o en su totalidad, certifica que los puntos de vista sobre las compañías y sus valores expresados en este informe reflejan con exactitud sus puntos de vista personales, y como consecuencia, toda persona que actúe basándose en ellos lo hace bajo su propio riesgo.El estudio proporcionado no constituye los puntos de vista de KW Investments Ltd, ni es una invitación a invertir con KW Investments Ltd El analista de estudios certifica, además, que ninguna parte de su remuneración ha sido, es o será directa o indirectamente relacionada con recomendaciones o puntos de vista específicos expresados en este informe.El analista de estudios no está contratado por KW Investments Ltd Le animamos a buscar asesoramiento con un consejero financiero independiente con respecto a la idoneidad de la inversión, en virtud de otra participación separada, cuando considere oportuno que es conforme con sus objetivos específicos de inversión, su situación financiera o, sus necesidades financieras particulares antes de comprometerse a invertir..Las leyes de la República de Seychelles rigen cualquier reclamación relacionada o que surja por el contenido de la información/análisis proporcionado.

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Miguel A. Rodriguez
Miguel A. Rodriguez
Autor financiero

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.