SPONSORED

AliBaba going for new records with the ANT Group IPO

The Ant Group IPO will be one of the largest new listings ever.

•• 3 Min
AliBaba going for new records with the ANT Group IPO

In one of China's largest IPOs ever, Alibaba's bulls can now bet on one of their most famous subsidiaries for just 5 cents a dollar. Over the past two years, President Trump's administration has put dozens of Chinese companies on the dreaded entity list, essentially preventing these companies from doing business in the United States. The latest victims are the video app TikTok and the messaging app WeChat, although US courts have managed to prevent an impending ban on both apps. Interestingly, Trump has failed to put the brackets on a much bigger opponent: Alibaba Inc. (NYSE: BABA).

Alibaba has already made history after becoming the second largest public offering ever on U.S. soil, rivaling only Saudi Aramco's 2019 IPO. BABA still stands out for one reason: although Aramco's IPO raised a record $ 29.4 billion, which valued the company at a staggering $ 1.7 trillion, only 5% of the company is public, while Alibaba is a fully public company. But now Alibaba is about to outbid Amazon again. In fact, BABA's financial tech spin-off, Ant Group, the online payments provider for Alibaba Group, could even outperform Alibaba's own $ 25B IPO as it targets a record $ 35 billion when it hits the Hong Kong and Shanghai stock exchanges goes public. CNBC has confirmed that Ant Group has just received approval from China's Securities Commissioner for the Hong Kong portion of its upcoming IPO, which could see ANT valued north of $ 200 billion.

This is even more interesting: Hong Kong stockbrokers are desperate for this deal to happen, and are offering mommy-and-pop investors ANT stock at an extremely generous 20x leverage. Essentially, this means that retail investors only need a 5% cash deposit to subscribe to ANT, an offer only available from Bright Smart Securities & Commodities Group and UP Fintech Holding Ltd. is submitted. Ant Financial's double listing on the Hong Kong and Shanghai stock exchanges could raise at least $ 35 billion, although an IPO date has not yet been set.

Ant Financial Services Group, founded by the Chinese billionaire and chairman of the Alibaba Group, Jack Ma, has grown to become the world's largest financial services company, making products that allow people to use their mobile phones to pay for insurance or buy groceries. Jack Ma founded Alipay, a subsidiary of Ant Financial, in 2004 to provide Chinese customers who lacked credit and debit cards with an easy way to shop on the vast online marketplace. The platform just got stronger and now has 1.3B users.

As Alipay grew, Jack Ma discovered that banks were not doing nearly enough to support small businesses and began promoting them with small loans. In 2010, Alipay was spun off from Alibaba after authorities stated that the platform would need a new license to operate. Through 2013, Alipay held billions of dollars in escrow customer funds. It was around this time that the company came up with the idea of ​​investing unused customer funds in money market funds in order to generate an income.

The money market fund, known as Yu'e Bao for "Leftover Treasures," allows customers to invest from as little as 0.01 yuan ($ 0.0015). The fund pays interest rates several points higher than what banks pay on short-term deposits, which it can because its status allows it to invest in riskier products than what banks are allowed to tap. A boom in asset-backed securities issued by micro-lenders who package consumer credit into securities has fueled the company's growth.

China's banks, including the country's largest, were not happy with how events unfolded, complaining that Ant siphoned off their deposits and forced them to pay higher interest rates to attract deposits, even leading to the closure of branches and ATMs Has. A state television station famously described Amei's massive money market fund as a "vampire who sucks blood from the banks".

Commerce and ConsumptionAlibabaChinaJack Ma

Most Popular News

  1. SpaceX’s $8B Spectrum Deal Sends AT&T, Verizon, and T-Mobile Plummeting
  2. Is Project Vault Securing America’s Supply Chain or Squeezing It to the Breaking Point?
  3. Why Gautam Lohia Shifted from Global Consulting to Reboot a $20M Tech Micro-Cap
  4. Everyday Luxury, Unstoppable Scale: Aritzia Delivers 44% Net Revenue Growth
  5. Can Navy SEAL Leadership and Big Tech Scale Revolutionize Airborne Threat Detection?

Disclaimer


This report should not be viewed as investment advice or as an offer to buy or sell any securities or as an invitation or solicitation of an offer to buy or sell any securities. Neither the author of this report, its publisher, nor any other person associated with the publication of this report, are registered brokers, investment dealers, investment advisers, or financial advisers. The information in this report has not been tailored to the particular needs or circumstances of readers and should not be relied upon as investment advice or recommendations to purchase or sell any of the securities presented in this report. Readers seeking investment advice should contact qualified and registered brokers, investment dealers, investment advisers, or financial advisers prior to making any decision to buy or sell any of the securities referred to in this report. The information in this report should not be construed as investment, legal, or tax advice. No recommendation is made as to whether an investment in the presented securities is suitable for any reader in light of the reader’s particular circumstances.

Readers are cautioned that the publisher of this report covers exclusively securities that carry a high degree of volatility. Investing in such securities is highly speculative and carries a high degree of risk. Investors in such securities could lose all or a substantial portion of their investment. Only those investors who can afford to lose all or a substantial portion of their investment should consider investing in the securities referred to in this report.

This report may include information obtained from publicly available sources, including third-party reports or analysis. Neither the author nor publisher of this report, nor www.juniorstocks.com or its owners, have undertaken any independent investigation into the factual information used in this report, and the information in this report is provided without any warranty of any kind. No representations or warranties are provided regarding the accuracy or completeness of the information provided in this report. Statements of opinion or belief are those of the authors and/or publisher of this report. These statements of opinion or belief are expressions of the author’s and/or publisher’s judgment, and there is no guarantee that those judgments will turn out to be correct. No inference should be drawn that the author and/or publisher have any special or greater knowledge about the presented companies or their securities, or any particular expertise in the industries or markets in which the company operates. Readers should conduct their own due diligence and seek professional advice prior to investing in any securities presented on Juniorstocks.com.

Certain statements in this report constitute “forward-looking” statements. Forward-looking statements often, but not always, are identified by the use of words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” “targeting,” and “intend” and statements that an event or result “may,” “will,” “should,” “could,” or “might” occur or be achieved and other similar expressions. Forward-looking statements express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance; they are not statements of historical facts and should not be viewed as any guarantee of any future result. Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. The author and/or publisher of this report disclaims any obligation to update the forward-looking statements in this report, whether as a result of new information, future events, or results or otherwise. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The information provided in this report is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to applicable law or regulation, or would subject the author or publisher of this report to any registration requirement in such jurisdiction or country.

Information about the editor of this publication:
Juniorstocks.com is a service provided by Piccadilly Capital Group, Office 66, 101 Clapham High Street, London, SW4 7TB, UK. Piccadilly Capital Group is not the publisher of this report and was not paid for the publication of this report. Piccadilly Capital Group seeks to generate web traffic and a growing number of followers through the publication of articles or reports. Directors, officers, and other insiders of the publisher own an interest in Piccadilly Capital Group. Piccadilly Capital Group does not endorse or recommend the business, products, services, or securities of any company mentioned on www.juniorstocks.com. Piccadilly Capital Group will not share your information with any outside third parties. Due to the new data protection basic regulation, we ask you to read our data protection declaration carefully.

Note on copyright:
The contents published on this website and on connected media (e.g., e-mail, X, Facebook) are subject to applicable copyright and ancillary copyright laws. Any use not permitted by applicable copyright and ancillary copyright laws requires the prior written consent of the provider or the respective rights holder. In particular, this applies to the duplication, editing, translation, storage, processing, or reproduction of content in databases or other electronic media and systems. Contents and rights of third parties are marked as such. Unauthorized reproduction or transmission of individual contents or complete pages is not permitted and is punishable by law. Only the production of copies and downloads for personal, private, and non-commercial use is permitted. Links to the provider's website are always welcome and do not require the consent of the provider of the website. Photos and images on the website may not be shared unless the publisher itself has acquired the initial rights from authorized sources. The presentation of this website in external frames is only allowed with written permission. If you notice any violations, please inform us. Please note: The content of our articles, emails, or other publications or social networks such as X, LinkedIn or Facebook is exclusively intended for the designated addressee(s). If you are not the addressee of these articles, emails, or other publications in the market letter or social networks such as Twitter or Facebook or his or her legal representative, please note that any form of publication, reproduction, or distribution of the content of these articles, emails, or other publications in the market letter or social networks such as X, LinkedIn or Facebook is prohibited. Falsifications of the original content of this message during data transmission cannot be excluded in principle.