Chinese e-commerce giant, Alibaba has a financial affiliate recognized as Ant Group. Recently, this tech group filed for an Initial Public Offering (IPO) in both Hong Kong and Shanghai. This certainly comes as good news for the company, but it should also be noted that it could turn out to be the largest IPO in history. The co-founder of Alibaba, Jack Ma created the Ant Group. As of now, this group is aiming to achieve a total valuation of $226 billion, a fact that can be gleaned by looking at its target IPO. The company is planning to raise a total of $30 billion in funds from the IPO, as reported by Bloomberg on August 25th, 2020. It had cited sources that were close to the matter.
Due to these figures, it can be safely said that it would turn out to be the largest IPO of its kind and may have the potential to move ahead of Saudi Aramco, the multinational gas and oil giant that was based in Saudi Arabia. They had an IPO this year and managed to raise $24.9 billion in funds from it. According to Bloomberg’s data, if the company is able to achieve the target valuation it has set, it would have the same market capitalization as that of the US banking giant, the Bank of America.
Moreover, this valuation would actually be double of another banking group called Citigroup. Bloomberg also disclosed that the Hong Kong valuation of the Ant Group would include some heavyweight names, such as China International Capital Corp, JPMorgan, Morgan Stanley, and Citigroup. The Shanghai counterpart of the IPO will be led by some local prominent investment banking firms, like China International Capital Corporation and CSC Financial. According to the estimates made by Ant Group, it will be able to raise around 48 billion yuan in Shanghai alone, which is the equivalent of $7 billion.
As per reports, the proceeds that will be accumulated from the IPO would be used by the Ant Group for expanding its cross-border payment services and will also be able to give a healthy boost to its research and development capabilities. Since Ant Group is planning to have the largest IPO in history, it has already introduced a new platform called AntChain on its blockchain business. This is just one of the various projects that Ant Group has undertaken via the use of blockchain technology, which it had begun using back in 2015.
Since then, Ant Group has been putting in a lot of effort and has paired it with innovations like the Internet of Things and AI. The latest platform by AntChain is related to copywriting and it allows blockchain technology and AI to work in tandem for securing copyright certificates for anything that will be uploaded on it. As a matter of fact, it has been developed in such a manner that it can even be used in courts related to copyright infringement cases.