Heavy demand for Ant Group shares in mainland
Thursday, October 29, 2020
The domestic retail book of Ant Group's US$34.4 billion dual listing was 872 times oversubscribed as individual investors in China scrambled for a slice of the world’s largest initial public offering (IPO), a company filing showed, Reuters reports.
Ant (6688) is poised to raise about $17.2 billion on Shanghai's STAR Market and roughly the same in Hong Kong, shattering the record set by Saudi Arabian Oil Co (Saudi Aramco) with its US$29.4 billion listing last December.
Hangzhou-based Ant, backed by e-commerce behemoth Alibaba, has decided to exercise a so-called greenshoe option for a 15 percent overallotment of shares, now selling 1.92 billion shares on the Nasdaq-style STAR Market, according to Ant's filing with the Shanghai exchange on Thursday.
After the greenshoe, the oversubscription equates to retail investment interest of about 19 trillion yuan (US$2.83 trillion).
The company on Monday set the price of the Shanghai leg at 68.8 yuan (US$10.27) per share. Before the greenshoe, it was offering 4 percent of the initial 1.67 billion shares to mainly retail investors across the country, having earmarked 80 percent of the domestic offering to 29 strategic investors who will be locked up for at least one year.