Speculation Mounts Over Revival of Ant Group’s IPO
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Ant Group or its subsidiaries could go public in Hong Kong as soon as early 2025 and on the mainland the following year, a securities analyst told Caixin. Photo: VCG
Speculation about Ant Group Co. Ltd.’s potential IPO revival has intensified as the shortest waiting period, triggered by earlier governance changes that eliminated the Chinese fintech giant’s actual controller, is nearing its end.
The company has yet to comment, but the market has already reacted, with companies linked to Ant Group seeing their share prices surge in recent days.
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- Ant Group's IPO revival speculation grows as governance changes, including Jack Ma reducing voting rights, near the end of mandatory waiting periods.
- Ant received a personal credit reporting license; regulatory compliance and changing lending practices impact their financial outlook.
- Alipay's market share declined significantly due to increased competition from platforms like WeChat Pay and Douyin.
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Who’s Who
- Ant Group Co. Ltd.
- Ant Group Co. Ltd. is a Chinese fintech giant undergoing speculation for an IPO revival after governance changes, including Jack Ma reducing his voting rights. The company, which faced a $34.5 billion IPO suspension in 2020, has now complied with regulatory demands, such as establishing Qiantang Credit for personal credit reporting. Ant Group's lending and online payments businesses have been significantly affected by regulatory restructuring and competition, reducing its market share.
- Tencent Holdings Ltd.
- Tencent Holdings Ltd. operates WeChat Pay, a competitor to Ant Group's Alipay. WeChat Pay has gained significant market share, growing from less than 20% to now holding around 80%, primarily at the expense of Alipay, whose market share has shrunk to about 20%.
- ByteDance Ltd.
- ByteDance Ltd. is the company behind Douyin, the domestic version of TikTok. In the article, Douyin is mentioned as a competitor affecting Ant Group's Alipay, contributing to the shrinking market share in the online payments sector. Douyin's expansion has added pressure to Alipay's position, which used to hold a predominant share in the market.
- Qiantang Credit
- Qiantang Credit is a yet-to-be-established affiliate of Ant Group, set to hold a personal credit reporting license as part of Ant's regulatory compliance efforts. Ant Group will have a 29.9% stake, while a local state-owned company will hold the largest stake at 35%. This development marks a milestone in Ant Group's rectification plan with financial regulators.
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What Happened When
- November 2020：
- Ant Group's $34.5 billion IPO was suspended.
- 2021：
- Ant Group reached a rectification plan with financial regulators to obtain a personal credit reporting license.
- 2023：
- Jack Ma ceded control of Ant Group by reducing his voting rights from 53.46% to just over 6%.
- Nov. 11, 2024：
- The People's Bank of China approved a personal credit reporting license for Ant Group's affiliate Qiantang Credit.
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