By Gina Lee
Investing.com – Hangzhou, China-based e-commerce giant Ant Group has lodged its application for a dual listing in Hong Kong and Shanghai.
The filings did not specify a share price range nor the amount the company hopes to raise. But proceeds will be used to expand cross-border payments, as well as enhancing research and development.
Ant has lined up a stellar list of advisors for the offerings, with Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), and China International Capital Corp advising on the Hong Kong offering. Credit Suisse (SIX:CSGN) is also part of the team as a joint global coordinator. Meanwhile, CICC and CSC Financial Co are leading the Shanghai listing.
The company is hoping to raise CNY48 billion ($6.94 billion) in this portion. A successful listing could see the dual listing potentially top Saudi Aramco’s $29 billion offering in 2019, which still holds the record for the biggest global debut in recent years.
Part of Jack Ma’s Alibaba (NYSE:BABA) Group (HK:9988), which holds a 33% stake, Ant is evolving into an online shopping mall offering products as diverse as loans, travel services and food delivery as it competes for consumers with rival Tencent Holdings Ltd (HK:0700). With Ant’s Alipay app boasting around a billion users, Ant is looking to expand into financial services, and artificial intelligence.
The filings also highlighted U.S.-China tensions, with U.S. export controls and trade sanctions posing the biggest expansion risks to the company. The tensions also led to Ant deciding against a U.S. listing over increased U.S. scrutiny of Chinese companies listed in U.S stock exchanges.
Alibaba’s Hong Kong shares rose 3.57% to HK$278.80 ($35.97) by 1:14 AM ET (6:14 AM GMT).