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Jack Ma’s Ant Group plans to restructure for Hong Kong IPO

Jack Ma’s Ant Group plans to restructure for Hong Kong IPO

According to a report by Bloomberg News on Tuesday, Ant Group, which is backed by Jack Ma, is considering a restructuring of its China financial-related business. The restructuring aims to separate certain non-core operations from the main entity reportedly with an aim to clarify things. These operations include blockchain, database management services, and international businesses. The goal of this restructuring is to pave way for Hong Kong IPO.

The announcement comes along the heels of the need to create a distinct entity that will apply for a financial holding license in China. Upon completion of the restructuring and the successful acquisition of the license, in Hong Kong, the Ant Group will be able to pursue a public listing. As per trusted sources, this plan deviates from their previous proposal of a dual listing in Shanghai-Hong Kong, which had been stopped in 2020 by the Chinese authorities.

When approached for a response to the report, Ant Group did not give any comments, and Alibaba, the affiliate of the Alibaba Group, did not immediately respond to a request for comment from Reuters.

Earlier this month, Ant Group unexpectedly announced a share buyback, valuing the company at USD 78.54 billion, a significant reduction from the previously anticipated USD 315 billion valuation during the suspended IPO. While Alibaba stated that it would not participate in the buyback, it confirmed its intention to retain its existing shareholding in the Ant Group.

Based on market speculations it has been alleged that some Chinese state-owned firms that had participated in the company’s earlier funding rounds are reportedly planning to take part in the buyback. Shareholders have until early August to make their decisions regarding this matter, as per Bloomberg's report. The sooner this decision is made, the faster the procedure can be carried out.


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Pooja Sharma

Pursuing her professional career as a content writer for over two years now, Pooja Sharma is endowed with a post-graduate degree in English Literature. The articles that she writes are a balanced blend of her ever-growing love of language and the technical expertise that she has gained over the years. Currently Pooja pens insightful articles for Newsorigins and numerous other websites, covering subjects such as business, finance, and technology.