Goldman Sachs has joined the growing list of investment banks working on Ant Group’s mammoth first public offering of up to $30 billion, two individuals with direct knowledge of the issue said.
Ant, backed by Chinese online marketplace Alibaba Group, plans to record concurrently in Hong Kong and Shanghai, in what sources have stated could be the world’s biggest IPO and come as soon as October.
Wall Street major Goldman Sachs has been hired as a joint lead manager on the Hong Kong leg of the IPO, said the people, who declined to be named as they were not authorised to talk to the media with this subject.
A spokesman for Goldman Sachs, which likewise acted as a joint lead manager on Alibaba’s $12.9 billion secondary record in Hong Kong this past year, declined to comment.
Ant also declined to comment.
The IPO of Ant, already the world’s most valuable unicorn – or billion-dollar hi-tech firm – are the first simultaneous listing in Hong Kong and Shanghai’s year old STAR Market.
The Hong Kong leg of the IPO has been sponsored by China International Capital Corp (CICC), Citigroup, JPMorgan, and Morgan Stanley. Credit Suisse is currently employed as a joint worldwide coordinator.
The top-ranked banks in a Hong Kong IPO are called sponsors and transmit legal liability for the validity of this prospectus. Under them are joint global coordinators, and around the bottom rung are joint lead managers.
Ant’s STAR Market listing has been directed by CICC and China Securities Co.
China’s biggest brokerage, CITIC Securities, is set to get a joint underwriter’s role on the mainland tranche, four individuals with knowledge of the matter said on Friday.
Ant’s mega IPO size means that the large syndicate of investment banks, especially those who have powerful retail buyer networks, is expected to work on the deal as it evolves towards a potential launching in October.
If Ant completes the offering in the approximately the $30 billion upper end of expectations, it might rival oil giant Saudi Aramco, which increased $29.4 billion last December, surpassing the record set by Alibaba’s $25 billion float in 2014.
Ant’s biggest and best-known business is Alipay, the largest player in China’s 430 trillion yuan ($62 trillion) third-party mobile payments market, according to market researcher Qianzhan.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Julie Zhu, Kane Wu and Scott Murdoch in Hong Kong. Editing by Sumeet Chatterjee and William Mallard.
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