HONG KONG: China’s shock suspension of Ant Group’s record US$35bil listing in a last-minute regulatory ambush looks set to hit the financial technology giant’s growth prospects and cut into its valuation.
The move to suspend Ant’s IPO was seen as a stunning rebuke for billionaire Jack Ma, a former English teacher who built Alibaba Group Holding Ltd and affiliate Ant into two of China’s biggest success stories.
Ant’s enormous heft and Ma’s recent criticism of global financial regulations, however, put him on a collision course with China’s top regulators. That said, analysts and investors expect the dual Hong Kong and Shanghai listing to be delayed and not completely derailed.
“Ant’s business is likely to be restricted by new financial regulations. As a result, the relaunched IPO price will most likely be lowered, ” said Andrew Collier, managing director of Orient Capital Research.
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