The calm before the red storm
a pill of the week
For this week the first #Pilloftheweek will be about the Fintech Company Ant Financial Group.
The Chinese company that manages Alipay, Alibaba’s fintech platform, could go beyond the numbers of the January listing of Aramco. The landing on the squares of Hong Kong and Shanghai is scheduled for October.
Ant Group has prepared documents for listing on the Hong Kong and Shanghai stock exchanges, expected in October. The Chinese fintech giant that manages Alipay is preparing the path that will lead it to what promises to be one of the largest IPOs of the year. The result could even exceed that of Alibaba, which in 2014 was listed at 168 billion dollars, obtaining 25 billion.
Alibaba’s fintech wing could be listed at over $ 200 billion. According to advances, the group could raise an additional 30 billion dollars from the IPO. It would be the highest figure ever collected: the current record is held by Aramco, which in January raised 29.4 billion when it was listed on the Riyadh stock exchange.
The presentation of the documents for the IPO also made it possible to better understand the financial situation of Ant Group which has shown a certain solidity: profits of 2.5 billion dollars (17 billion yuan) in 2019, in very strong growth compared to 667 million yuan the previous year. In the first six months of 2020, the figure rose even more: 20 billion yuan, in the context of half-year revenues of 72.5 billion yuan (+ 38%).
In 2019 Ant Group recorded a turnover of 120.6 billion yuan, up 40% year on year. In total, there were 711 million active users of Alipay in June. Digital payments and financial services for sellers account for 43% of revenues. Thanks to the stock exchange listing, Ant Group intends to expand the type of digital financial services offered to individuals and merchants.
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Thanks for reading this #Pilloftheweek from the Licas Ventures Team