Ant's record-breaking IPO attracts $3 trillion in retail-investor bids
- Ant Group's historic $35 billion initial public offering is garnering unprecedented interest from
retail investorsin Shanghai and Hong Kong.
- Jack Ma's financial-services company took in more than $3 trillion in orders from individual investors across its dual listings in Hong Kong and Shanghai.
- Roughly 19.1 trillion yuan ($2.9 trillion) worth of bids was raised in the Shanghai portion, according to regulatory filings. The Hong Kong allocation drew 1.3 trillion Hong Kong dollars ($168 billion) in bids, sources told Reuters.
- The Shanghai allocation was oversubscribed by 872 times, while the Hong Kong half saw bids for 389 times the shares on offer.
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The financial-services company — a branch of
The Hong Kong debut pulled in 1.3 trillion Hong Kong dollars ($168 billion), sources familiar with the matter told Reuters. That was roughly 389 times the shares set to be made available. The Hong Kong tranche also garnered nearly twice the bids as the city's next-biggest debut.
Read more: Steven Pesavento quit his 9-to-5 career to pursue real-estate investing full time. Here's how he went from a no-experience tech-head to having flipped over 200 properties in a few years' time.
Interest in the company's debut was so extreme that one brokerage's platform crashed, Bloomberg reported.
Ant is set to raise $34.5 billion across the two offerings in November, breaking the IPO-proceedings record set by Saudi Aramco last year. The listing is likely to value Ant at more than $313 billion. The company is set to begin trading in Hong Kong on Thursday; it's unclear when shares would start trading in Shanghai.
The tidal wave of retail demand suggests individual investors aren't put off by numerous risks facing the firm. For one, the IPO was delayed earlier in the month after China's
Read more: Leaked documents show Universa Investments made a 105% annual return on capital from 2008 to 2019. Here's a behind the scenes look at its 'tail-risk hedging' strategy pioneered by 'Black Swan' investor Nassim Taleb.
Ant also faces scrutiny in the US. The State Department proposed adding the company to its trade blacklist, Reuters reported earlier this month. China hawks in the Trump administration reportedly wanted to disincentivize US investors from participating in the firm's IPO.
The move would further a streak of aggressive trade measures keeping US-China tensions at heightened levels. Should President Donald Trump win reelection, Ant could be the target of continued US investigation.
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