The late cancelation of coveted $37 billion Ant’s Initial Public Offering (IPO) has hurt not only the company but also the lead bank China International Capital Corporation (CICC), according to Reuters. Following the cancellation, CICC will lose a hefty payday and a rise in global investment banking rankings.
- Ant’s deal’s cancellation is a blow to CICC and other main underwriters as they had been discouraged from working on competitor assignments during the process.
- CICC had the coveted position of being the only bank working on both Hong Kong and Shanghai legs of Ant’s IPO listing and would have earned more fees
- Ant’s IPO in its Shanghai leg was suspended just days before the debut that prompted the company to halt Hong Kong listing as well.
CICC shares slide 6.5% on Wednesday morning trading. 3908: HKG is down 6.46%