Ant’s dual listing could double cross Wall Street

Ant's seal of approval will encourage more Chinese issuers to consider the upstart venue, especially as souring Sino-US relations make New York less attractive.[HONG KONG] Ant's dual listing is bad news for Wall Street. A chunk of the US$150 billion fintech giant will be sold on Shanghai's fledgling Star board, which is proving popular with big issuers and where fees for initial public offerings are as generous as in New York.

Issuers with dual-class shares and structures utilised to skirt foreign investment rules couldn't previously list in China, forcing them to flock to New York or Hong Kong. The former British territory was a natural fit for those that wanted to list closer to their home market. Launched last year, Star is accommodating and fast becoming a formidable threat. It has hosted 77 IPOs that have raised US$12.8 billion this year, according to Dealogic, versus 73 that raised US$9.

Ant's seal of approval will encourage more Chinese issuers to consider the upstart venue, especially as souring Sino-US relations make New York less attractive. That puts Wall Street in a bind. Foreign banks are unlikely to take big roles on Ant's Star listing or others on the board because they have to pay to play: Local rules state lead banks must buy at least 2 per cent of shares issued, which many are reluctant to do. That cuts them off from bumper fees: Star issuers paid 5.

Issuers might choose to list on both bourses to access domestic and foreign capital. Ant plans to sell 10 per cent of its shares in Shanghai and 5 per cent in Hong Kong for a combined US$30 billion, Caixin reported. Even if Ant is as frugal when it comes to paying fees as Alibaba, which paid banks 1.2 per cent of proceeds for its 2014 listing in New York, that would mean US$240 million in fees for the Star portion and half that for Hong Kong.

Ant Group, the financial services affiliate of Chinese e-commerce giant Alibaba, said on July 20 that it had started the process for a dual listing on Shanghai's Nasdaq-style Star market and the Hong Kong stock exchange. Details such as the size and timetable of the initial public offering were not disclosed.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Wall Street jumps with focus on stimulus packageU.S. stock index futures rose on Wednesday following a pullback on Wall Street in the previous session, as resilient fuel demand drove up oil ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

US: Wall Street opens higher with eyes on stimulus[NEW YORK] US stocks opened higher on Wednesday, with the S&P 500 edging closer to an all-time high, as a fall in US crude stockpiles drove up oil prices, although investors remained on edge due to a stalemate over a new coronavirus relief bill. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Exclusive: China pushes First Capital merger in drive to take on Wall StreetChina plans to merge domestic broker First Capital Securities with smaller rival Capital Securities, three sources said, underscoring Beijing's ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Singapore shares rise at open after Wall Street climbs; STI up 0.3%SINGAPORE stocks opened higher on Thursday following gains on Wall Street overnight. Singapore's benchmark Straits Times Index rose 0.3 per cent or 6.69 points to 2,569.89 as at 9.03am. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Asian stocks set to track Wall Street's defiant rallyAsian stocks were set for broad gains on Thursday after Wall Street's S&P 500 index briefly touched record highs, as investors appeared to shrug ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Ikea X Greyhound's New Collab Brings The Sabai Sabai Life & Bangkok Street Culture Into Your Home
Source: TODAYonline - 🏆 1. / 99 Read more »