U.S. markets closed
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow 30

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Russell 2000

    1,855.27
    +10.25 (+0.56%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • Gold

    1,788.10
    -23.10 (-1.28%)
     
  • Silver

    22.64
    -0.81 (-3.44%)
     
  • EUR/USD

    1.1970
    +0.0057 (+0.48%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.32%)
     
  • USD/JPY

    104.0850
    -0.1650 (-0.16%)
     
  • BTC-USD

    18,116.06
    +348.01 (+1.96%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,644.71
    +107.40 (+0.40%)
     

Alibaba-Backed Ant Group Plans To Further Raise IPO Valuation Target To $280B: Report

Aditya Raghunath
·1 min read

Alibaba Group Holdings Ltd (NYSE: BABA)-backed fintech firm Ant Group is planning to revise the target valuation for its initial public offering to $280 billion, Bloomberg reports. Ant was earlier said to be targeting 0 billion.

What Happened: The 12% increase in enterprise valuation is a result of strong investor demand for a stake in the company, according to Bloomberg. 

The Jack Ma-backed company reportedly estimates that its IPO could generate around $35 billion in proceeds, which would make it the largest such offering globally, ahead of Saudi Aramco's $29.4 billion IPO.

The fintech company is said to be considering a same-day dual listing — both on the Hong Kong Exchange and the Shanghai Exchange. However, Ant is yet to receive a go-ahead from the Chinese regulatory authorities, people familiar with the matter told Bloomberg.

Why Does It Matter: Ant is reportedly facing headwinds from President Donald Trump's administration.

The president has received a proposal from the U.S. State Department to put the fintech company on the U.S. entity list, a move that would significantly restrict Ant's ability to do business with the U.S. companies, Reuters reported.

Institutional investors — new and existing — seem to remain interested in Ant, nevertheless. Singapore’s sovereign wealth fund, GIC Private Limited, could invest over $1 billion in both the listings, as per Bloomberg.

In September, Ant Group investor Temasek Holdings also expressed interest to participate in the IPO, a Reuters report said.

Price Action: After a 0.52% dip during regular trading hours, Alibaba shares gained 0.66% during after-hours at $301.45.

Photo courtesy: Ant Group via Wikimedia

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.