Ant Group announces dual-listing to raise a record $34.4 billion

Chinese financial technology giant Ant Group Co Ltd on Monday announced plans to raise up to $34 billion, in the world’s largest share issue through a dual-listing of its stock.

Ant Group which is an affiliate of Chinese e-commerce giant Alibaba, is aiming to raise about $17.2 billion in Shanghai and roughly the same amount in Hong Kong this week, Ant said in filings with the stock exchanges late on Monday.
Ant set the price tag for the Shanghai leg of its dual-listing at 68.8 yuan ($10.27) per share, while the price was set at HK$80 ($10.32) per share for the Hong Kong tranche, the exchange filings showed.
The $34.4 billion initial public offering would beat the previous IPO record set by Saudi Aramco's $29.4 billion float last December.
The deal would value Ant at more than $313 billion, excluding the 15 per cent greenshoe option proposed by Ant. With this valuation, Ant overtakes Industrial and Commercial Bank of China, the No1 bank by assets globally.
The bookbuilding for the Hong Kong leg will run from Monday to Friday, while books of its Shanghai leg will open for one day on Thursday.
The Hong Kong public offer of initially 41,768,000 H shares (subject to adjustment) representing 2.5 per cent of the total number of offer shares initially available under the H Share IPO, and the international placing of initially 1,628,938,000 H shares (subject to adjustment and the H
share over-allotment option) representing 97.5 per cent of the total number of offer shares initially available under the H share IPO.
Ant said the allocation of the offer shares between the Hong Kong public offer and the international placing will be subject to reallocation as described in the section headed “Structure of the H Share IPO” in the prospectus.
In particular, the Joint Representatives may, in their sole and absolute discretion, reallocate offer shares from the international placing to the Hong Kong public offer to satisfy valid applications under the Hong Kong public offer. 
Under the International underwriting agreement, Ant said it expected to grant to the International Underwriters, the H share over-allotment option, exercisable within 30 days after the last day for lodging applications under the Hong Kong public offer.
Applicants for the Hong Kong offer shares are required to pay, on application, the H share offer price of HK$80 per offer share together with brokerage fee of 1 per cent, SFC transaction levy of 0.0027 per cent and the Hong Kong Stock Exchange trading fee of 0.005 per cent, Ant stated in its filing.