By
Bena Ilyas
April 25th, 2024
Ant Group institutional order book of the $17.2 billion Hong Kong listing was due to close on Thursday, but it will be closed earlier.
After setting the pace for the biggest IPO ever recorded, Ant Group has closed the institutional order book of the Hong Kong listing due to heightened demand. According to news outlet Reuters, the Ant Group institutional order book of the $17.2 billion Hong Kong listing was due to close on Thursday, but that deadline will be accelerated to Wednesday 5.00 p.m. in each region.
Notably, the Hong Kong order book was oversubscribed just one hour after the launch on Monday. Hereby indicating a strong demand for the fintech company shares.
To put the figures into perspective, the expected Ant Group valuation will be approximately $90 billion less than the total global crypto market capitalization based at the time of reporting. In addition, it will be over $80 billion of the market capitalization of Bitcoin, the leading digital asset.
Ant Group Bigger Picture
The fintech company shares have a huge demand both in China and across Asia where the company has most of its products available for the public. The overwhelming demand comes even after Ant Group was blacklisted in the United States for what the Americans refer to ‘security reasons’.
Apparently, 97.5% of the Hong Kong shares are set to go to institutional investors, thus leaving less than 3% for the retail traders. The huge support from institutional investors can be viewed as notable partnerships. As a result, any product Ant Group launches will be overwhelmingly supported by the institutional investors that support it financially.
With the Hong Kong order book closed, institutional investors can no longer bid on Ant Group shares as set by the management. This is because an order-book building process is a period when investors indicate their interest in an IPO and submit the number of shares and prices they want to subscribe to. Whenever the demand is high, the book can be closed early.
The Hong Kong shares are set to begin trading on November 5, with the Shanghai ones expected to begin at the same time. Ant Group through Alibaba Group Holding Ltd (NYSE: BABA) not only employs a huge portion of the Chinese vast population but also supports China’s new dual circulation economic strategy. As a result, Ant Group’s ventures are set to be supported by the Chinese regulators who are in the ‘Cold War’ with the American counterparts in dominating global technology.
Investors feel confident putting their capital with Ant Group based on its past performance and future prospects. This comes at a time when the global economy is recovering from the coronavirus pandemic that has left most economic sectors struggling to survive.
Technology and precisely electronic payments with blockchain technology and artificial intelligence have been cited as key factors to help industries gain a competitive edge. Ant Group’s vast capital is expected to be channeled in either of the above fields.