|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||46.97 - 47.47|
|52-week range||25.91 - 51.00|
|Beta (5Y monthly)||1.15|
|PE ratio (TTM)||49.04|
|Forward dividend & yield||0.96 (2.04%)|
|Ex-dividend date||31 Aug 2020|
|1y target est||N/A|
(Bloomberg) -- Billionaire Jack Ma’s Ant Group plans to file for dual listings in Hong Kong and Shanghai in the next few weeks, targeting a valuation of about $225 billion, people familiar with the matter said, in an effort to pull off the world’s largest initial public offering.The share sales could raise about $30 billion in total if markets are favorable, said one of the people, requesting not to be named because the matter is private. The Hangzhou-based firm seeks to float its shares simultaneously on the Hong Kong stock exchange and the tech-focused Star board in Shanghai as soon as October, the people said.Ant, which made about $1.3 billion in profit in the March quarter, is Alibaba Group Holding Ltd. founder Ma’s prized asset. It’s morphed from a fintech platform to an online mall for everything from loans and travel services to food delivery, in a bid to win back shoppers lost to Tencent Holdings Ltd. With data from almost a billion users of its Alipay app at its back, Ant is pushing broadly into financial services, delivering technology such as robo investing and lending platforms as well as building out its advisory business.A $30 billion dual listing could mark the biggest debut globally, topping Saudi Aramco’s record $29.4 billion haul, according to data compiled by Bloomberg. At a valuation of $225 billion, Ant’s valuation would be bigger than Goldman Sachs Group Inc. and Morgan Stanley combined.Ant’s plans including details of the share sale are subject to change, the people said. A representative for Ant declined to comment.China Securities Regulatory Commission received an application Friday from Ant for an overseas listing, according to its website. No further details were given.Ant’s IPO will give another boost to Hong Kong Exchanges & Clearing Ltd., which has already seen a renaissance of Chinese tech listings after it relaxed rules in the wake of losing China’s biggest tech firms to New York. Alibaba, which owns a third of Ant, returned with a $13 billion secondary listing last year in Hong Kong.China’s effort to build its own tech bourse in Shanghai underscores the geopolitical tension with Washington. A high-powered group of U.S. regulators said this month that stock exchanges should set new rules that could trigger the delisting of Chinese companies. Firms must grant American regulators access to their audit work papers in order to trade on a U.S. exchange, according to the President’s Working Group on Financial Markets.The recommendations target a problem that has vexed U.S. regulators for more than a decade: China’s refusal to allow inspectors from the Public Company Accounting Oversight Board to review audits of firms that trade on American markets. A high-profile accounting scandal at Luckin Coffee Inc. this year has also elevated such concerns.(Updates with CSRC accepts Ant’s application for overseas listing in the 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.
(Bloomberg) -- A new index focused on China’s technology giants is set to give investors greater access to their growing dominance in Hong Kong’s market.The Hang Seng Tech Index, which launched Monday with backdated prices, tracks the 30 largest tech companies listed in the city, including Tencent Holdings Ltd., Alibaba Group Holding Ltd., Meituan Dianping and Xiaomi Corp. Tracking the gauge this year would have returned 44% for investors, versus a loss of 13% for the Hang Seng Index. The tech measure fell 1.3% Monday.“All the conditions are now ready for large China tech stocks whether in China or already listed elsewhere,” Vincent Kwan, chief executive officer of index compiler Hang Seng Indexes Co., said on Bloomberg Television Monday.The move comes at a time when further listings of Chinese technology firms are in the pipeline, such as Jack Ma’s Ant Group, following those of NetEase Inc. and JD.com Inc. Listing closer to home has become more attractive as tensions between Washington and Beijing threaten to curtail Chinese companies’ access to U.S. capital markets.The compiler of the Hang Seng Index has already embraced change through moves such as scrapping a weighting limit for dual-class shares on some of its gauges. The tech index is seen helping investors bridge a gap between a Hong Kong benchmark overstuffed with old economy banks and insurers, and the technology companies that have emerged as big winners in the city’s beaten-down market.“There are too many laggards in the Hang Seng Index,” said Castor Pang, head of research at Core Pacific-Yamaichi International Hong Kong. “With overseas-listed Chinese firms deciding to list closer-to-home, the Hong Kong market falls short in terms of having a representative index for these stocks. This new index serves to fill this gap and drive capital flows.”Citi analysts led by Pierre Lau wrote in a recent note that the index will attract investors to other Hong Kong tech stocks, facilitate the issuance of index-linked funds and derivatives as well as boost turnover at Hong Kong Exchanges & Clearing Ltd. That stock is up 40% this year, most in the Hang Seng Index.Supported by strong mainland inflows through stock connect links, Chinese technology shares have emerged as big winners in Hong Kong this year. Tencent has surged 38% while Meituan is up 82%.The Hang Seng Index, on the other hand, has underperformed. Nearly half of its members have fallen at least 20% this year.Morgan Stanley sees the new technology gauge providing a bigger sentiment boost near-term to the MSCI China Index than the Hang Seng, which has few components that will also be in the tech index. “The direct stock-level positives cannot translate into a meaningful index-level boost,” analysts led by Laura Wang wrote.(Updates Monday’s prices throughout)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.
(Bloomberg) -- Billionaire Jack Ma’s Ant Group is seeking a valuation north of $200 billion as it goes public in Hong Kong and Shanghai, people familiar with the matter said, kicking off a much-anticipated market debut for China’s leader in internet finance.The parent of China’s largest mobile payment company will pursue a simultaneous dual-listing in Hong Kong and on the Shanghai stock exchange’s STAR board, the Hangzhou-based firm said, in what promises to be one of the largest debuts in years. Ant is already more richly valued than most Wall Street firms and, if conditions are favorable, it could seek to raise more in its IPOs than Saudi Aramco’s record $29 billion haul, one of the people said, asking not to be identified talking about a private deal.The crown jewel of the sprawling Alibaba empire, Ant has been accelerating its evolution into an online mall for everything from loans and travel services to food delivery, in a bid to claw back shoppers lost to Tencent Holdings Ltd. Ant’s Chief Executive Officer Simon Hu has said that he wants people to think of Alipay as more than just a niche provider of financial services and the payments gateway for the world’s biggest e-commerce platform. Part of that is to grow Ant’s reach in Asia, where it has been working with digital payment providers in India and Thailand as well as peddling its expertise in wealth management and risk controls.Alibaba shares rose 3.1% in New York, near a record high since its 2014 IPO.Ant picked China International Capital Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley for its Hong Kong offering, which could raise about $10 billion, people familiar with the matter said.The Alibaba affiliate is the latest major Chinese company to seek a listing closer to home as increased trade tensions make New York’s capital markets less desirable. Semiconductor Manufacturing International Corp. raised $7.5 billion from a Shanghai share sale in July that ranks as the world’s biggest new stock offering this year, according to data compiled by Bloomberg. Some Chinese internet firms including JD.com Inc. and NetEase Inc. have also added second listings in Hong Kong this year.“Despite abundant capital, it is not sure how investors would view Ant Group since there are a lot of tech stocks in the market,” said Pamela Chung, a Hong Kong-based managing director and head of IPO at consultancy Tricor Group.Dual listings, once the preferred route for China’s largest corporations from banks to oil and gas producers, have since fallen out of favor in part because of the complexities involved in orchestrating share sales across very different capital regimes. Ant’s decision is a triumph for Shanghai’s fledgling STAR board, conceived with the ambition of becoming mainland China’s preferred listing destination for high-growth companies.A dual listing also helps Hong Kong Exchanges & Clearing Ltd., which is seeing a renaissance of tech listings after it relaxed rules in the wake of losing China’s biggest tech firms -- including Alibaba Group Holding Ltd., which owns a third of Ant -- to New York.While Ant has begun working with bankers on the Hong Kong debut, more advisers could be added at a later stage and details of the offering could change as deliberations are ongoing, the people said.Beyond FinanceAnt, valued at $150 billion in its last funding round, generated $2 billion in profit in the fourth quarter, based on calculations made from Alibaba’s filing.Like Alibaba, Ant has hit the brakes on its U.S. expansion as tensions between America and China have escalated. Ma said in 2018 that his promise to create 1 million jobs in the U.S. was impossible to fulfill because of trade tensions between the two super powers.Instead, Ant has focused it offshore ambitions on building its presence in the rest of Asia, where it’s working with nine payment startups including the owners of Paytm in India and GCash in the Philippines.Domestically, it’s expanding into consumer and technology services.Its technology solutions include services in cloud computing, artificial intelligence, blockchain and risk control. Ant aims to assist banks to dole out loans to consumers, and partner with brands like KFC Holding Co. and Marriott International Inc. to attract and manage customers.Fending Off TencentHu is betting that those strategies will help Ant defend its dominance of China’s $29 trillion mobile payments space. Alipay’s share of mobile payments has increased for three consecutive quarters, rising to 55.1% in the fourth quarter, according research consultant iResearch. Tencent has 38.9% of the market.It also diversifies Ant’s business into less-sensitive areas after the firm drew regulatory scrutiny for its blistering expansion in financial services with in-house products.To mark the transformation, Ant changed its registered name to Ant Group Co. from Ant Financial Services Group at the end of May.Ant’s origins are not without controversy. In 2010, Ma hived off the six-year-old Alipay from Alibaba over the objections of shareholders including Yahoo! Inc., citing potential regulations that may curb foreign ownership of financial businesses. Alipay then expanded into loans, wealth management and consumer credit under the entity that’s now known as Ant Group. The dispute was eventually settled via an arrangement that granted Alibaba a proportion of Alipay’s income. Alibaba ended up buying a 33% stake in Ant last year.With an Ant IPO, shareholders could recalibrate the value of the business for Alibaba.“Investors may have to factor in more than $60 billion into Alibaba’s valuation to reflect its 33% equity stake in Ant Group,” Bloomberg Intelligence analysts Vey-Sern Ling and Tiffany Tam wrote. (Updates with Alibaba’s New York shares from fourth 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.