Exclusive: Ant Group in Talks for International Unit IPO in Hong Kong

Ant Group Co. Ltd., a leading fintech firm with major backing from Alibaba Group Holding Ltd., is currently pursuing a Hong Kong stock market listing for its international division, Ant International. According to sources, the group is engaged in active discussions with regulatory authorities in Hong Kong and Singapore, and they have received signals that no significant regulatory barriers exist for the IPO process. Zhou Zhifeng, Ant Group’s senior vice president and general counsel, is at the forefront of these negotiations. Notably, Ant International is legally incorporated in Singapore [para. 1][para. 2].

This move aligns with recent speculation that Ant Group is reviving its long-delayed IPO plans. The speculation was fueled by a sweeping governance reform, following which Jack Ma, the founder and once the group’s principal controller, relinquished his grip on the company. His voting rights were dramatically cut from 53.46% to just over 6% as part of compliance measures following a regulatory clampdown in 2020 on improper practices within China’s fintech landscape. This transition was finalized in late 2023, effectively ending Ma’s role as the actual controller of certain Ant Group subsidiaries [para. 3].

According to laws governing IPOs in mainland China and Hong Kong, a period of official waiting is imposed if a company shifts its controlling shareholder. The timeline differs: three years before a main board listing in mainland China, two years for Shanghai's STAR Market, and just one year for the Hong Kong Exchange. Consequently, Ant Group or its subsidiaries could be eligible for a Hong Kong listing as early as this year [para. 4].

Ant Group originally planned to go public in July 2020, targeting a record-breaking dual listing in Shanghai and Hong Kong, potentially raising $34.5 billion. However, the application was suspended just months later, after regulators proposed new, stricter regulations on online microlending, affecting key revenue generators like Huabei and Jiebei [para. 5].

Revived IPO rumors intensified in April 2024, when Bright Smart Securities and Commodities Group Ltd., a listed company in Hong Kong, announced its chairman would sell a 50.55% stake to Ant Group’s wealth management arm for about HK$2.8 billion ($361.3 million). This deal is set to trigger a mandatory buyout offer for all remaining Bright Smart shares, in accordance with Hong Kong’s Takeovers Code [para. 6].

Some market observers interpreted this as a potential backdoor listing attempt—where a private entity achieves a public listing by acquiring a controlling stake in a listed firm. However, insiders dismissed this route, noting that local regulations would make a backdoor listing exceedingly hard due to requirements concerning asset size relative to the listed entity [para. 7][para. 8].

Indeed, Bright Smart Securities' reported assets of HK$8.1 billion are dwarfed by those of Ant Group, making a backdoor listing practically unfeasible [para. 9].

Ant International operates globally, with its headquarters in Singapore and a presence across Asia, Europe, the Middle East, and Latin America. The unit became independently managed with its own board in 2023, following internal group restructuring [para. 10][para. 11].

Financially, Ant International’s relevance has grown. It contributed only 5% of Ant Group’s revenue during the 2020 IPO attempt, but this share increased to around 20% by 2024. The international arm is now valued at about 200 billion yuan ($27.8 billion) [para. 12].

The unit, established in 2015, began by facilitating cross-border payments for Chinese tourists and has since expanded, notably in Southeast Asia. It controls significant consumer and merchant payment platforms like Alipay+, Antom, and WorldFirst [para. 13].

More recently, Ant International has strengthened its overseas lending portfolio via digital platforms such as Anext Bank and Bettr, focusing on loans for small and midsize businesses, especially in Brazil and Southeast Asia [para. 14].