Ant Group Co. Ltd filing showed that it is 872 times oversubscribed as the investors booked for the $34.4 billion initial public offering listing, according to Reuters. Ant expects to raise $17.2 billion on Shanghai’s STAR market and roughly the same in Hong Kong. Investors are rushing to purchase the fast-growing Chinese fintech firm despite scrutiny concerns at home and abroad.
- Ant will allocate 70% shares to strategic investors and the remainder split 12-18% between institutional and retail investors
- The company will exercise the so-called greenshoe option for a 15% overallotment of shares, now selling 1.92 billion shares on Star Market.
- After greenshoe, Ant’s oversubscription will be equivalent to retail investment interest of about 19 trillion yuan.
- Ant’s stock was oversubscribed one hour after launch on Monday, which sparked a strong demand for local currency and strengthened market rates to five-month highs.
- In Hong Kong, investor demand is strong, and Ant closed institutional order books a day earlier than planned.
- Oversubscription towards Ant’s float has triggered a clawback mechanism, where small investors can receive a greater share.
- In Hong Kong, strong demand for the 41.76 million Ant’s shares offered to retail investors is expected to be increased to 167.1 million if the initial retail allocation is more than 20 times oversubscribed.
- Ant set the price of the Shanghai leg at 68.8 yuan per share on Monday, but before the greenshoe, it was offering at 4% of the initial 1.67 billion shares to retail investors, 80% to 29 strategic investors, and 16% to non-strategic investors.
Ant’s IPO will be the world’s largest, above the $29.4 billion Saudi Arabian Oil co. set in December