American multinational investment bank Goldman Sachs Group Inc. has been reportedly added to the list of investment banks which are working on Ant Group’s initial public offering (IPO) of over USD 30 billion.
As per the sources, Ant Group is planning to list itself in Shanghai as well as in Hong Kong simultaneously, further allowing it to be world’s largest IPO by October 2020. The company will receive support from Alibaba Group whereas Goldman Sachs will be posted as a joint lead manager for the Hong Kong branch of the IPO.
Notably, Ant IPO is already the most valuable billion-dollar unlisted tech firm globally. Following the recent development, it would be the first simultaneous listing in STAR market of Shanghai and Hongkong.
Sources further claimed that Hong Kong’s top banks will carry the legal liability regarding the accuracy of the prospects. China Securities Co. and CICC will lead Ant’s STAR market listing. Meanwhile, CITIC Securities, which is China’s largest brokerage house, is likely to get a role of joint underwriter on the mainland tranche.
According to industry experts, Ant’s huge initial public offering size indicates the joint association of the various investments banks, particularly the ones which have robust retail networks and are likely to put efforts on the deal as they move towards the possible launch in October.
If Ant completes the IPO at USD 30 billion, it would stand in competition with Saudi Aramco, an oil giant which raised USD 29.4 billion in December 2019 exceeding the record of USD 25 billion set by Alibaba in 2014, experts cited.
China International Capital Corp (CICC), JPMorgan, Citigroup, and Morgan Stanley are together funding the Hong Kong leg of the IPO, stated sources close to the matter.