China’s Ant Financial Targets At Least $8B In Investor Funding
China’s Ant Financial Services Group is negotiating with investors to raise its fundraising target to at least $ 8 billion, which could see its value jump to $ 150 billion, have knowledge of the plan speak.
Singaporean state investor Temasek Holdings is likely to be the leading investor in raising the company’s most recent equity stake, controlled by Alibaba Group Holding Ltd founder Jack Ma, three.
Reuters reported in February that Ant, the owner of China’s leading online payment platform Alipay, had planned to raise up to $ 5 billion, could rate the company over $ 100 billion.
The fundraiser goes ahead of the expected stock market rally, though Ant did not set a timetable for the initial public offering and did not select any similar positions.
One of the speakers said Ant could increase from $ 8 billion to $ 10 billion due to strong investor demand.
Everyone spoke to Reuters on the condition that they were not named fundraising details as confidential. Ant and Temasek declined to comment. Alibaba did not respond to a Reuters comment.
The previous IPO was an increasingly popular move by Chinese companies seeking to value and expand their investment base before publicity.
The $ 150 billion valuation will make Ant one of the largest joint-stock companies ever to reach the launch of Spotify and Dropbox this year. It will be comparable to Facebook’s $ 104 billion adventures six years ago or Alibaba’s $ 168 billion in 2014.
Ant’s latest fundraising event in April 2016 highly valued the company, some analysts said that it is one of Alibaba’s most valuable assets due to its special position in e-commerce. About $ 60 billion.
Share of Alibaba e-commerce rose 4.3 percent in New York on Tuesday.
Alibaba said in February they had a 33% stake in Ant, replacing the previous system, receiving 37.5% of Ant’s pre-tax profit, in what is considered a significant step before IPO.
“Part of the increase in value may be due to new investors getting more features,” said Jay Ritter, IPO expert and professor at the University of Florida.
“But part of the increase is because the company is still living up to expectations and is becoming one of the more important rivals in China’s mobile payment space.”
Temasek has expanded its technology investments in recent years and recent contracts include the SenseTime Group of China Facial Recognition Technology Developers and Go Go-Jek.
The Wall Street Journal reported on Tuesday that Ant had planned to raise $ 9 billion in financing plans, potentially valuing the company at $ 150 billion.
WSJ said it plans to list on both domestic and overseas exchanges, in line with expectations that it will be listed in both Hong Kong and New York.
The buzz among US investors has risen sharply this year as Dropbox, Spotify and Zscaler launch new technology, easing concerns as Snap Inc.’s stock plunges last year.
Alibaba has set up Alipay in 2004, the business model on PayPal, which helps Chinese online shoppers, and in 2011 debated extending it and rebranding the payment processor into Ant Financial for three years. later.
After becoming the dominant payment company in China, Ant Financial focused on the international market by buying shares in India’s Paytm Payments Company and Thailand’s Ascend Money.
But the effort to buy US money transferee MoneyGram International was blocked by US officials on national security grounds earlier this year, a blow for Ma had promised President Donald Trump that he It will create 1 million US jobs.
Ant’s current shareholders include large public organizations such as China Life Insurance and China Post Corporation, parents of the China Postal Savings Bank.