Alibaba-backed Ant Group to go public in Shanghai, Hong Kong

1010 WINS Newsroom
July 20, 2020 - 7:04 am

The app for Alipay, the mobile payments service operated by Ant Group, is seen on a smartphone in Beijing on Monday, July 20, 2020. Ant Group, the online payments arm of e-commerce giant Alibaba Group, announced plans Monday for an initial public stock offering that could become the world's biggest since the start of the coronavirus pandemic. (AP Photo/Ng Han Guan)

HONG KONG (AP) — Ant Group, the online payments arm of e-commerce giant Alibaba Group, announced plans Monday for an initial public stock offering that could become the world’s biggest since the start of the coronavirus pandemic.

Ant, valued at $150 billion after a 2018 private fundraising round, gave no indication how much money it hopes to raise in the joint offering in Hong Kong and Shanghai. But the offering would be a test of investor willingness to look beyond the pandemic and worsening global economy.

The company will list on the Shanghai Stock Exchange’s (SSE) STAR board and on the Hong Kong stock exchange (SEHK).

A public offering in Hong Kong would also give foreign investors a chance to own a piece of the biggest player in the huge Chinese online payments industry. That would look doubly attractive at a time when the pandemic has given the Chinese e-commerce industry a boost.

Apart from mobile payments service Alipay, Ant Group also operates one of the world’s largest money market funds and runs Sesame Credit, a private credit rating system for its users.

“The innovative measures implemented by SSE STAR market and the SEHK have opened the doors for global investors to access leading-edge technology companies from the most dynamic economies in the world and for those companies to have greater access to the capital markets,” Eric Jing, executive chairman of Ant Group, said in a statement.

In recent years, Ant Group has invested heavily in payments providers in regions including Southeast Asia and Europe as it looks to offer financial services to more users around the world. Together with its partners, Ant Group serves over 1 billion users globally.

In 2019, it bought U.K. payments company WorldFirst to bolster its global expansion.

“We strive to enable all consumers and small businesses to have equal access to financial and other services that are inclusive, green and sustainable,” the company said in a statement.

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Associated Press writer Joe McDonald in Beijing contributed to this report.

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