Alibaba Group Holdings Ltd (NYSE:BABA)-backed fintech firm Ant Group is planning to revise the target valuation for its initial public offering to $280 billion, Bloomberg reports. Ant was earlier said to be targeting $250 billion.
What Happened: The 12% increase in enterprise valuation is a result of strong investor demand for a stake in the company, according to Bloomberg.
The Jack Ma-backed company reportedly estimates that its IPO could generate around $35 billion in proceeds, which would make it the largest such offering globally, ahead of Saudi Aramco's $29.4 billion IPO.
The fintech company is said to be considering a same-day dual listing — both on the Hong Kong Exchange and the Shanghai Exchange. However, Ant is yet to receive a go-ahead from the Chinese regulatory authorities, people familiar with the matter told Bloomberg.
Why Does It Matter: Ant is reportedly facing headwinds from President Donald Trump's administration.
The president has received a proposal from the U.S. State Department to put the fintech company on the U.S. entity list, a move that would significantly restrict Ant's ability to do business with the U.S. companies, Reuters reported.
Institutional investors — new and existing — seem to remain interested in Ant, nevertheless. Singapore’s sovereign wealth fund, GIC Private Limited, could invest over $1 billion in both the listings, as per Bloomberg.
In September, Ant Group investor Temasek Holdings also expressed interest to participate in the IPO, a Reuters report said.
Price Action: After a 0.52% dip during regular trading hours, Alibaba shares gained 0.66% during after-hours at $301.45.
Photo courtesy: Ant Group via Wikimedia