The Jack Ma-controlled Ant team has finally initiated what the market has been expecting for years. The group is setting off its widely awaited initial public offering, with intentions to list both in Hong Kong and on China ‘s latest Shanghai internet bourse.
The owner of China’s biggest mobile payment firm is working into what may have been one of the highest listings ever recorded. During the last round of investment it was worth $150 billion. The Hangzhou-based corporation said in an emailed announcement that Ant is going to seek a dual listing in Hong Kong and the Shanghai STAR bursary Committee. It’s aiming for a price of at least $200 billion, people familiar with the matter said, asking not to be named when thinking about a private
contract.
A crown jewel in the vast conglomerate in Alibaba, Ant has expanded its transformation into an online supermarket for anything from loans and transportation options to grocery distribution, in a attempt to win back customers lost to Tencent Holdings Ltd. Chief Executive Officer Simon Hu needs people to start thinking of Alipay as more than just a small supplier of financial products and a payment portal to the world’s biggest e-commerce site.
Alipay also caters to a wide variety of customer requirements, from groceries to asset investment, and hotel reservation to bank loans.
Ant’s goal is to generate more than 80 per cent of sales from local retailers and finance companies within five years by so-called digital support payments, up from around half by the end of 2019. Such a consequence, the revenue from exclusive companies, such as Ant’s own money management fund and loans, will be decreased.
Ant seeks to support banks lend loans to borrowers and to work with brands such as KFC Holding Co. and Marriott International Inc. to draw and retain clients. Those technology solutions would include services in cloud computing, artificial intelligence, blockchain and risk control. Hu is betting that such tactics can help Ant protect its domination of China’s $29 trillion mobile payment market.
According to analysis firm Research, the portion of mobile payments in Alipay has risen to 55.1% for three successive quarters in the fourth quarter. Tencent has a market share of 38.9 percent.
This further expands Ant’s company into less volatile markets after the firm drew public criticism for its blissful growth into in-house financial services.
Ant ‘s registered name was modified from Ant Financial Services Company to Ant Business Co. at the end of May, to reflect the transition.
The roots of Ant are not without dispute. In 2010, Ma hid Alipay, a six-year-old from Alibaba, over the opposition of shareholders, including Yahoo! Inc., fearing possible restrictions that could limit international control of financial firms.
Alipay then grew to cover loans, asset management and consumer finance under an organization now known as the Ant Party. The disagreement was ultimately resolved by an settlement that gave Alibaba a share of Alipay ‘s profits. Alibaba ended up taking a 33% interest in Ant last year.
