© Reuters. FILE PHOTO: The Ant Group logo is depicted in the Shanghai office of Alipay, which is owned by Ant Group, a subsidiary of Chinese e-commerce giant Alibaba in Shanghai
By Julie Zhu, Kane Wu, and Samuel Shen
HONG KONG / SHANGHAI (Reuters) – China's Ant Group could raise up to $ 17.3 billion on the Shanghai leg of what is likely to be $ 35 billion double listing, the world's largest ever after some major investors bids in the area surrendered from 68 to 69 yuan per share, said people knowledgeable.
The Chinese financial technology giant's simultaneous listing in Hong Kong and Shanghai, backed by the e-commerce giant Alibaba (N :), would hit the biggest IPO yet, Saudi Aramco & # 39; s (SE 🙂 $ 29.4 billion last December.
The price for the Shanghai tranche of the IPO was set on Friday, Alibaba founder Jack Ma said on Saturday without announcing the price.
"It is the first time that pricing for such a large listing – the largest in human history – has been set outside of New York City," he said at the Bund Summit in Shanghai's eastern financial center, referring to Ants Float as " Wonder" ".
Later on Saturday, a person with direct knowledge told Reuters that many major Chinese fund managers were bidding for Ant shares on the NASdaq-style STAR market in Shanghai for nearly 69 yuan ($ 10.32) apiece.
At 69 yuan per share, Ant could raise up to 115.3 billion yuan ($ 17.3 billion) in the Shanghai tranche, valuing the company at up to 2.1 trillion yuan ($ 314 billion) overall, before a 15% greenshoe or over-allotment option is offered.
According to local market rules, the final IPO price, which would also be the first double listing in Hong Kong and on the annual STAR, is based on guidelines from major investors.
The people declined to be named because they were not authorized to speak to the media. Ant declined to comment on the pricing.
The IPO would burn the Shanghai-based exchange's status as a rapidly growing capital markets hub at a time when mounting tensions between China and the US have raised concerns over the prospect of Chinese companies listing in New York.
Ant has chosen the stock code 688688 for its Shanghai listing, which for Chinese speakers combines two of the happiest or most auspicious numbers, symbolizing enduring prosperity and good fortune in Chinese culture.
The books for the swimmer's Shanghai leg will open for one day on October 29th.
Ant plans to sell up to 1.67 billion shares of the Shanghai Float, which is expected to be the largest public offering in China, setting the Agricultural Bank of China (OTC 🙂 (SS 🙂 record of 10.1 billion US dollars surpassed Shanghai in 2010 according to refinitive data.
Strategic investors, whose investments in Ant's STAR IPO are blocked for at least 12 months, will account for 80% of the Shanghai float.
Among them is Zhejiang Tmall Technology, a unit of Alibaba that has pledged to buy 44% of the Shanghai float, according to Ant's updated prospectus.
Ant seeks an even split of the Hong Kong-Shanghai share sales and sells up to 11% of its expanded share capital.
For the stage in Hong Kong, Ant plans to open order books on Monday and evaluate the offer in the coming days.
Late on Saturday, Ant did not immediately respond to requests for comments on the Hong Kong timetable.
The stocks are expected to start trading a few days after the US presidential election, which could increase market volatility.