Ant Earns $3.2 Billion in the First Half
The world’s largest fintech company filed its application for an IPO yesterday.
Today, Ant Group announced that, for the year-to-date period ending on June 30, the platform made transactions amounting to an impressive total of 118 trillion yuan.
In the first half of 2020 alone, it recorded a 21.92 billion yuan or $3.2 billion net earnings from 72.53 billion yuan of revenue.
Furthermore, upon the announcement of the move towards a public offering, Alibaba’s shares in HKEX rose 3.57% to $35.97.
Analysts note that Ant’s decision for an IPO in two Asian markets manifests the company’s decision to stay away from US listings.
The Trump administration then released successive export controls and trade sanctions to some of the biggest Chinese-owned tech firms, posing critical risks for those involved.
The geopolitical tensions resulted in scrutiny against Chinese companies listed in US stock exchanges.
This made the tech financial service provider reconsider its choice and go for the safer bet. This thus means penetrating the Asian markets.
Experts note that the technology firm targets to raise $30 billion from its public offering. This is ahead of the current record of $29 billion held by Saudi Aramco since 2019.
The stock market debut will push Ant Group to advance the $250 billion to a $300 billion market cap. This is three to four times the value of the Dow-listed Goldman Sachs.
Ant Group’s IPO Will Boost HKEX
After Hongkong’s controversial security law entered the picture, the HKEX fell to the fifth spot as an IPO destination. It is currently behind the newly-established STAR Market of Shanghai.
Nevertheless, the concurrent listing is a breath of fresh air for the sluggish performance.
Ant group is one of the most prized assets for Jack Ma. The firm offers various services for users, ranging from loans to food delivery and travel services. Recently, it ventured into artificial intelligence.
The new rounds of funding from the IPO will help the financial services provider expand its influence and face its giant rival, Tencent, head-on.
