Ant Financial's Going Public

Ant Financial's Going Public

over 3 years ago2 mins

Mentioned in story

Ant Financial – the fintech business of Chinese internet giant Alibabaannounced plans for an initial public offering (IPO) that could value it at an unsquishable $200 billion 🐜

What does this mean?

Ant – which owns ubiquitous Chinese payment service Alipay – said it plans to list its shares on both the Hong Kong stock exchange and China’s tech-focused Star Market, which should help more global investors buy into the stock if they’re keen to.

Daily Brief Image

Ant hasn’t said exactly when it wants to “go public” yet, or how much it aims to raise when it does. But when the company last raised money from private investors in 2018, it was valued at $150 billion – making it the world’s largest unicorn 🦄 Since then, some of its investors – including the world’s biggest investment manager BlackRock – have upped their assessments of what it’s worth, suggesting the upcoming IPO could value the company at $200 billion.

At $150 billion in 2018, Ant trumped the market capitalizations of leading financial institutions
At $150 billion in 2018, Ant trumped the market capitalizations of leading financial institutions

Why should I care?

The rapid demise of German payment processor Wirecard last month might’ve encouraged Ant to accelerate its expansion plans. Wirecard, after all, claimed it had a booming business across parts of Southeast Asia – and given that things in the region weren’t quite as they seemed, it could present more of an opportunity than Ant initially thought 🌏 But the company’s ambitions don’t stop at financial and payment processing: it aims to start selling a greater proportion of tech services like cloud computing, artificial intelligence, risk management, and blockchain.

Data out last week showed the Chinese economy grew by a more-than-expected 3.2% in the second quarter compared to the same period last year 🇨🇳 The manufacturing industries that make up the majority of China’s economy appear to have recovered, but consumer spending was weaker than predicted. Ant’s investors in particular will want to see spending pick up soon, especially since so much of it is done via the company’s platform.

Daily Brief Image
Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG