Jack Ma can’t get his stake in Ant Group’s record-breaking $ 37 billion initial public offering, which was slated for well into next year. And, oh yeah, it won’t be anywhere near $ 37 billion.
Lawyers involved in the listing of Ant said the company had to respond to demands from Chinese regulators and file a new Hong Kong IPO prospectus that could take at least six months.
“The most important thing is these new regulatory changes,” said one person with direct knowledge of the business.
The draft regulation could put a heavy strain on Ant’s lending business, which generated around 40 percent of sales in the first half of the year, and affect the company’s valuation.
Hey, it could have been worse. In any case, for those longing for some hot Hong Kong IPO, there is always this TikTok competitor who doesn’t face the same pressures as its bigger rival.
Kuaishou Technology, an operator of a popular short video and live streaming platform that works with ByteDance Ltd. competes in China, aiming to raise around $ 5 billion by listing in the international financial center, and valued at around $ 50 billion from a person familiar with the situation. Kuaishou’s market debut could take place as early as January 2021, said the person and another person familiar with the plans.
Ant Group’s IPO has been delayed for at least 6 months after the Beijing intervention [FT]Beijing wants to treat ant like a bank, and its value depends on balance [WSJ]Chinese rival to ByteDance plans to go public in Hong Kong in the billions [WSJ]