Ant Group’s $34 billion share sale is set to catapult Shanghai’s bourse to the top of the global rankings in terms of cash raised in 2020, underscoring the rising might of China’s capital markets as tensions with the US simmer, reported the Financial Times.
The payments group’s blockbuster initial public offering, which is split evenly between Shanghai and Hong Kong, will bring the total raised on the mainland Chinese exchange from primary and secondary listings to $52.8 billion this year, according to data from Refinitiv.
The figure is up 200% from a year ago and well above the $38 billion raised in 2020 on New York’s Nasdaq. The offering, which is set to begin trading next week, will put the Chinese exchange on track for its best year since 2007, when companies sold stock worth $55 billion, said the FT.
“Ant has put Shanghai on the map for good,” said one banker working on the group’s IPO, adding that the listing raised the exchange’s standing to a level comparable with Hong Kong. “After this year there will be two IPO markets that matter in Asia.”