BusinessTech

China halts Ant Group’s giant IPO

0
JackMa
Ant Group’s highly anticipated Initial public offering(IPO) has been suspended by the regulators in China. This suspension was made after a meeting between Jack Ma and the China regulators, threatens what was due to be the largest share sale in history. Ant Group’s share supposed to begin trading less than two days when the suspension was made.

 

Suspension

According to the Shanghai Stock Exchange in a statement on Tuesday, it postponed the company’s listing because of “major issues”. This “major issues” might cause it “not to meet the listing conditions or disclosure requirements.”

Besides, Hong Kong has also suspended Ant’s IPO.

 

Share market of Ant’s IPO

AntGroup

The dual listing of Ant’s IPO was set to raise $37 billion, making it the biggest share sale in history. Saudi state oil company Aramco holds the record for an IPO. During the last December, Aramco raised $29.4 billion when it issued shares on the Riyadh exchange.

The IPO of Ant would have valued it at more than $310billion as it is an affiliate of Alibaba(BABA). This IPO is worth more than major US investment banks. For instance, these banks include Goldman Sachs (GS) and Morgan Stanley (MS).

As a result of this suspension, shares in Alibaba plunged as much as 9% on New York.

 

Chinese regulators 

The People’s Bank of China and three other financial regulators summoned Ma and two Ant Group executives for questioning this Monday, which subsequently causes the suspension. This is because Ma publicly criticized Chinese regulators for stifling innovation by being too cautious when taking a risk.

According to a geotechnology analyst expert, this is the first time Chinese regulators have taken such harsh actions on the eve of a large IPO.

Duncan Clark, the chairman of investment advisory firm BDA China said a statement according to this situation. He said Chinese regulators want to put out statements that they are the ones in charge, the ones in control.

 

 

More Information About:
Content Source:

China halts Ant Group’s giant IPO after dust up with billionaire Jack Ma

 

Dark chocolate can be good for your heart

Previous article

Trump takes key swing state of Florida

Next article

You may also like

Comments

Leave a Reply

More in Business