Jack Ma’s Ant Plans Early Book Close for Hong Kong IPO, , on October 27, 2020 at 4:29 am

Financial News
By High West Capital Partners
On October 27, 2020
In Financial News
Tags:

(Bloomberg) — Jack Ma’s Ant Group Co. is planning to stop taking investor orders for the Hong Kong leg of its initial public offering a day earlier than scheduled as the record stock sale has already been heavily subscribed, according to people familiar with the matter.Demand has been so great the Hangzhou-based firm is set to close the institutional investor order book on Wednesday, said the people, requesting not to be identified because the matter is private. The company was initially planning to close the Hong Kong book at 5 p.m. Thursday for each region globally, according to terms of the deal obtained by Bloomberg News. The potential move would bring the closing in line with the Shanghai leg.A representative for Ant declined to comment.Ant is seeking to raise about $34.5 billion through IPOs in Shanghai and Hong Kong, a blockbuster listing that will be the biggest IPO ever and make it one of the most valuable finance firms on the planet. The operator of the Alipay platform will have a market value of about $315 billion based on filings Monday, bigger than JPMorgan Chase & Co. and more than the gross domestic product of Finland. The sale vaults Ma’s fortune to $71.6 billion, topping the Walmart Inc. heirs.This is “a homecoming for capital markets in Shanghai and Hong Kong,” said John Ho, founder of Janchor Partners. Ho, who invested $400 million in Ant two years ago, said he’s trying to get more Hong Kong shares, adding that being able to invest in Ant “is priceless.”The IPO is attracting interest from some of the world’s biggest money managers, and sparking a frenzy among individual investors in China clamoring for a piece of the sale. In the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for over 76 billion shares, more than 284 times the initial offline offering tranche, according to Ant’s Shanghai offering announcement.T. Rowe Price Group Inc., UBS Asset Management and FMR LLC, the parent of Fidelity Investments, are among the money managers angling for a piece of the deal, a person familiar with the matter has said. Hong Kong stockbrokers are so confident the IPO will go smoothly that they’re offering to let mom-and-pop investors buy the stock with as much as 20 times leverage.The strong demand puts the much-anticipated IPO on track to surpass Saudi Aramco’s $29 billion sale last year. Ant priced its Shanghai stock at 68.8 yuan ($10.27) apiece and its Hong Kong shares at HK$80 ($10.32) each. The company may raise another $5.17 billion if it exercises the option to sell additional shares to meet demand, known as the greenshoe.Ant will trade under the ticker symbol 688688 in Shanghai and 6688 in Hong Kong, in keeping with Ma’s fondness for the number eight, which is often associated with wealth in China. Ma’s Alibaba Group Holding Ltd., which owns about a third of Ant, trades under the ticker 9988 in Hong Kong.The fintech giant is charging ahead with its landmark offering just days ahead of the U.S. election. The Hong Kong trading debut will be on Nov. 5., only two days after the U.S. vote, an event that could spark market volatility if the vote is disputed or counting delayed.Ma, the former English teacher who co-founded Alibaba with $60,000, is poised to become the world’s 11th-richest person after the Ant IPO.Ma’s 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai. That will lift the 56-year-old’s fortune to $71.6 billion on the Bloomberg Billionaires Index, exceeding that of Oracle Corp.’s Larry Ellison, L’Oreal SA heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart.The IPO promises a lucrative pay-day for some of the world’s biggest investment banks. Ant picked China International Capital Corp. and CSC Financial Co. to lead its Shanghai leg of the IPO. CICC, Citigroup Inc., JPMorgan. and Morgan Stanley are heading the Hong Kong offering. Existing Ant shareholders won’t be able to sell shares for six months, according to the filings.(Updates with details on the pricing from sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.,

Jack Ma’s Ant Plans Early Book Close for Hong Kong IPO(Bloomberg) — Jack Ma’s Ant Group Co. is planning to stop taking investor orders for the Hong Kong leg of its initial public offering a day earlier than scheduled as the record stock sale has already been heavily subscribed, according to people familiar with the matter.Demand has been so great the Hangzhou-based firm is set to close the institutional investor order book on Wednesday, said the people, requesting not to be identified because the matter is private. The company was initially planning to close the Hong Kong book at 5 p.m. Thursday for each region globally, according to terms of the deal obtained by Bloomberg News. The potential move would bring the closing in line with the Shanghai leg.A representative for Ant declined to comment.Ant is seeking to raise about $34.5 billion through IPOs in Shanghai and Hong Kong, a blockbuster listing that will be the biggest IPO ever and make it one of the most valuable finance firms on the planet. The operator of the Alipay platform will have a market value of about $315 billion based on filings Monday, bigger than JPMorgan Chase & Co. and more than the gross domestic product of Finland. The sale vaults Ma’s fortune to $71.6 billion, topping the Walmart Inc. heirs.This is “a homecoming for capital markets in Shanghai and Hong Kong,” said John Ho, founder of Janchor Partners. Ho, who invested $400 million in Ant two years ago, said he’s trying to get more Hong Kong shares, adding that being able to invest in Ant “is priceless.”The IPO is attracting interest from some of the world’s biggest money managers, and sparking a frenzy among individual investors in China clamoring for a piece of the sale. In the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for over 76 billion shares, more than 284 times the initial offline offering tranche, according to Ant’s Shanghai offering announcement.T. Rowe Price Group Inc., UBS Asset Management and FMR LLC, the parent of Fidelity Investments, are among the money managers angling for a piece of the deal, a person familiar with the matter has said. Hong Kong stockbrokers are so confident the IPO will go smoothly that they’re offering to let mom-and-pop investors buy the stock with as much as 20 times leverage.The strong demand puts the much-anticipated IPO on track to surpass Saudi Aramco’s $29 billion sale last year. Ant priced its Shanghai stock at 68.8 yuan ($10.27) apiece and its Hong Kong shares at HK$80 ($10.32) each. The company may raise another $5.17 billion if it exercises the option to sell additional shares to meet demand, known as the greenshoe.Ant will trade under the ticker symbol 688688 in Shanghai and 6688 in Hong Kong, in keeping with Ma’s fondness for the number eight, which is often associated with wealth in China. Ma’s Alibaba Group Holding Ltd., which owns about a third of Ant, trades under the ticker 9988 in Hong Kong.The fintech giant is charging ahead with its landmark offering just days ahead of the U.S. election. The Hong Kong trading debut will be on Nov. 5., only two days after the U.S. vote, an event that could spark market volatility if the vote is disputed or counting delayed.Ma, the former English teacher who co-founded Alibaba with $60,000, is poised to become the world’s 11th-richest person after the Ant IPO.Ma’s 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai. That will lift the 56-year-old’s fortune to $71.6 billion on the Bloomberg Billionaires Index, exceeding that of Oracle Corp.’s Larry Ellison, L’Oreal SA heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart.The IPO promises a lucrative pay-day for some of the world’s biggest investment banks. Ant picked China International Capital Corp. and CSC Financial Co. to lead its Shanghai leg of the IPO. CICC, Citigroup Inc., JPMorgan. and Morgan Stanley are heading the Hong Kong offering. Existing Ant shareholders won’t be able to sell shares for six months, according to the filings.(Updates with details on the pricing from sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

+65 3105 1295

Taiwan

Coming Soon!

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Follow Us

Market Coverage