A dream stock to own. I have to have this
How does this affect Alibaba shareholders?
A good question that I cant answer. I do know there will be a massive amount of cash piling into Ant.
Does FT have any stocks listed on the hong kong exchange?
No not yet. I will get this using Degiro.
Found this, Ant are behind the payment app Alipay
In 2011, Alibaba sold control of Alipay to a group controlled by Jack Ma, a move it said was done to satisfy Chinese regulations. Yahoo, which was Alibaba’s biggest shareholder at the time, said that transaction happened without its knowledge, something the Chinese e-commerce giant denied at the time.
Yahoo, another major shareholder SoftBank and Alibaba eventually came to a deal that same year: Alibaba would be paid at least $2 billion but no more than $6 billion if Alipay went public. Alipay was also required to pay licensing fees and continue serving Taobao, one of Alibaba’s e-commerce platforms.
And Jack Ma personally owns a controlling stake in Ant Finacial
Will this definitely be on Degiro?
No I can see now they don’t cover any asian exchanges, maybe freetrade will allow access one day but can’t see it happening soon. Access via it being a component of a freetrade listed fund may be possible.
But even if it was I suppose access for the retail investors would be too late to the party and would have to wait for the dust to settle before getting a decent price
Bummer! Anyone else know where we could purchase?
You could Invest in Alibaba:
A simpler way to invest in Ant is to buy shares of Alibaba. Alibaba previously held an agreement with Ant which entitled it to 37.5% of its fintech affiliate’s pre-tax profits. But last September, Alibaba traded those rights for a 33% stake in the company.
Alibaba’s equity stake in Ant generated 5.32 billion yuan ($752 million) in investment profits, or 4% of its net income, in fiscal 2020. It also generated fees from the previous profit-sharing agreement in the first half of the year.
It’s unclear if Alibaba will sell any shares of Ant after its IPO, but it will likely remain its top shareholder. Ant won’t generate as much revenue for Alibaba as its core e-commerce and cloud businesses, but it could boost its investment profits over the long term. Meanwhile, the expansion of Alipay – which is tightly tethered to Alibaba’s online marketplaces and retail stores – will strengthen Alibaba’s ecosystem and widen its moat against Tencent.
The combined market value of Alibaba group will surpass that of Amazon.
Scottish Mortgage have Ant in their portfolio
That’s good to know. Cheers!
When Ant Financial go public on 4 November and if the IPO goes well would you expect an increase in the share price of Scottish Mortgage?
It’s a very good question, have all my money in a S&S ISA (in cash) looking to start my long-term investment plan. Large part of my portfolio is Scottish Mortgage, looking for the best time to invest. Maybe this could be it (also heavy in Alibaba and NIO has got into their top 10 which I’ve been looking at for ages)
Yes I just read up on how they came to hold it directly. Its largest unlisted holding. A combined purchase of SMT and BABA looks good
found some good info on this. The IPO is the 5TH NOVEMBER
for those of you who are fresh to the scene on this AliPay broke away from Alibaba to meet Chinese regulations. and over the past few years, their growth has been huge. (700m+ monthly active users, 30% profit margins and control of more than half of the Chinese market in payments, I think it’s about 53%)
Unfortunately, I don’t think that FT and other apps will have the IPO available on their platforms.
I’ve done some digging - Alibaba still owns 33.3% of Ant Group. https://www.ii.co.uk/analysis-commentary/ant-group-how-access-massive-ipo-ii513691
another way to get in indirectly is through the Bailie Gifford Chinese Growth Fund (not on FT) i’ve attached the funding details below. BGCG.
If the IPO is successful, (which indications are looking that way) I think it could add an additional ~$60Bn valuation on Alibaba, (which is valued at ~$1tn)
would be good to hear what people’s view are on this IPO? I’m thinking a 5% rise on Alibaba stock
Not sure what you mean. The trust doesn’t have Ant Financial stock?
If you mean Alibaba, you can buy it on FT.
Scottish Mortgage Trust has allocated I think around 2% of their portfolio to ANT if you want exposure, though Alibaba seems the best route.
I’m hoping this IPO leads to a decent increase in my BABA stock, hopefully the IPO coupled with some great earnings and a potential Biden election win would give it a decent boost.
For those following this, it has been suspended by China regulators (both the Shanghai and Hong Kong listing):
Financial Times: China halts $37bn Ant Group IPO, citing ‘major issues’.
Reuters UK: Shanghai stock exchange suspends Ant Group’s A-share IPO.