Ant Group Listing May Make Hong Kong Exchange World IPO Leader Again

Ant Group raises $34.4 billion in the biggest IPO of all time

Ant Group Listing May Make Hong Kong Exchange World IPO Leader Again

Ant Group's planned sale of up to $ 30 billion of shares should revive the fortunes of the Hong Kong Exchange and Clearing Company (HKEX), which dropped to fifth place as an IPO target in the first half of 2020.

China's dominant mobile payments company and fintech subsidiary of Alibaba Group Holding Ltd filed on Tuesday for dual listing in Hong Kong and Shanghai Star Market in the world's largest IPO.

Placement is due to the introduction of the law «About safety» in Hong Kong and subsequent fears about Hong Kong's future as Asia's premier financial center.

Hong Kong was the world's top listing destination in 2019, thanks to Alibaba's $ 12.9 billion SPO, but ranked third in IPOs, Refinitiv data showed. It should be noted that a year earlier it was also the leader in the primary listing segment.

According to the results of the IPO in the first half of 2020, Hong Kong dropped to fifth place, behind the Nasdaq, the New York Stock Exchange, the Chinese technology platform STAR Market and the Shanghai Stock Exchange.

Several large IPOs are known to be in the pipeline before the end of the year on competing Hong Kong exchanges.

Ant did not disclose exactly how much the company expects to raise in each of its proposals in Hong Kong and Shanghai..

Hong Kong and Shanghai suspends Ant Group’s record $34.5 billion IPO

«Hong Kong provides access to international institutional investors and convertible currencies, while Shanghai can provide broad domestic investor participation», – said Drew Bernstein, Co-Chair of the Advisory Board Marcum Bernstein & Pinchuk.

Technology companies today  in value account for 25.1% of the underlying Hong Kong Hang Seng Index. In 2015, this figure was only 8.6%.

«The Hong Kong market is evolving and internet giants are increasingly replacing real estate companies and financial institutions», – noted by the capital markets consultant Philip Espinass.

HKEX declined to comment on Ant listing information. When Ant first announced its plans on July 20, the CEO of HKEX Charles Lee said this deal would establish Hong Kong as the world's leading international IPO market.

Ant Group Listing May Make Hong Kong Exchange World IPO Leader Again