Fintech Giant Ant to End Institutional Subscription Two Days Early
Liao Shumin
DATE:  Oct 27 2020
/ SOURCE:  Yicai
Fintech Giant Ant to End Institutional Subscription Two Days Early Fintech Giant Ant to End Institutional Subscription Two Days Early

(Yicai Global) Oct. 27 -- Alibaba-backed internet financial service colossus Ant Group, which is expected to set a record for the world's largest initial public offering, will end the share subscription of its institutional offering in Hong Kong at 5.00 p.m. tomorrow, two days ahead of schedule, after buyers have thronged to sign.

The part of international offering was reportedly oversubscribed within one hour after its 7.30 p.m. start. Institutional investors participating in the subscription, including the world's top sovereign wealth funds, are buying in a frenzy, The Paper reported today, citing sources.

Ant began the offering subscription on the Shanghai Stock Exchange’s Nasdaq-style Star Market and the Hong Kong Stock Exchange yesterday, seeking to raise CNY230 billion (USD34.2 billion), CNY114.9 on the mainland and CNY114.1 in Hong Kong.

The world’s largest fintech firm intends to issue about 1.67 billion shares for HKD80 (USD10.32) each, of which the Hong Kong offering makes up 2.5 percent, the international offering 97.5 percent, and the other 15 percent is attributed to a greenshoe over-allotment equity.

A share subscription is a contract that requires an investor to buy a stated number of shares from a company in future at a specified price.

A greenshoe is an over-allotment option in an initial public offering based on a clause in an underwriting agreement granting the underwriter the power to sell investors more shares than the issuer initially planned if demand outstrips supply.

Editor: Ben Armour
 

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Keywords:   Ant Group,IPO