Alibaba’s payments arm, Ant Group/Financial has filed for IPO in both Hong Kong and Shanghai to issue at least 10% in new shares of its total capital. It is likely to be the largest in global financial history.
The predecessor of the Ant Group is Ant Financial and its flagship product Alipay is a ubiquitous super app with more than 1.3 billion global users. In addition, Ant Group’s products involve money market fund Yu’e Bao, Sesame Credit, Ant Jubao, Internet Commercial Bank, Ant Xiaodai, Ant Financial Cloud, Yu’e Bao, Zhao Cai Bao, Ant Huabei, etc.
Alipay has continued to expand its scope of services, from information consultation, restaurant reviews, online shopping, and its service ecosystem continues to expand. In June, Ant changed its name from Ant Financial to Ant Group, emphasizing at the same time that it is shifting away from a financial to a technology company.
In the most recent fundraising (mid 2018), approximately US$14 billion was raised from investors such as Temasek, General Atlantic, Warburg Pincus and Baillie Gifford. It has nearly reached 150 billion US dollars in total. Alipay’s counterpart, Paypal Company has a current market value of approximately US$209 billion.
Alipay is the largest digital payments services provider as measured by Total payment volume (TPV) in China, according to iResearch.
Innovations of Alipay app is synonymous with digital payments in China. The app has allowed Alipay to deliver unrivalled value and convenience to our customers, which has led to wide acceptance and popularity of e-wallet and massive transaction volumes. According to the prospectus, it has 711 million monthly active users and more than 80 million merchants today.
3.Strong Financial Position
In the twelve months ended 30 June 2020, TPV transacted on Alipay platform in mainland China reached RMB118 trillion. It has earned 21.92 billion yuan ($3.2 billion) of 72.53 billion yuan revenues which rose 38% as compared to 2019 (Six months ended June 30).
Ant Group revenues come from various streams such as digital payment and merchant services, digital finance technology platform, including Credit Tech, Investment Tech and Insure Tech, innovation initiatives and others.
Source: Ant Financial Prospectus
Ant group financials has shown a gradual shift in revenue stream, moving from Digital payments and merchant services to Digital Finance technology platform. In 2017, its digital payment services accounted for 54.9% of its revenue. These come from transaction fees generated from merchants and transaction platforms based on a percentage of transaction volume from commercial transactions in China. However, it only accounted for 35.8% of its revenue in the first half of 2020.
Ant’s digital financial technology platform took a major 63.4% share by first half of 2020. By partnering with financial institutions, this newly superior platform provides customer a range of risk management solutions that cover SMB credit, investments and insurance.
Summary
Ant Group has grew from its initial payments service launched by Alibaba, building trust between e-commerce buyers and sellers, to a technology company today. Together with its strategic financial partners, the platform is able to provide a wholesome of services.
Alipay app popularity has continued to attract new users worldwide with its diversified streams of services such as wealth management, micro financing, insurance, and credit services.
With plans to further innovate and expand its reach with the proceeds from the listing offerings, Ant group is one of the most watch IPO in 2020. According to reports, it could become the largest IPO in history with the company seeking to raise USD $30 billion.
Trade Ant Group on Poems one day before the official listing date with our Hong Kong Pre-IPO market!
What is Hong Kong Pre-IPO?
The Hong Kong Pre-IPO trading market is a channel provided by Phillip Securities for customers to trade Hong Kong shares one day before their official listing in the HKEX. Phillip Securities is the first broking house in Singapore and Hong Kong to offer customers the Pre-IPO trading channel.
Customers can login to POEMS 2.0 and trade under the Hong Kong Pre-IPO tab. Shares bought in the Hong Kong Pre-IPO market can be sold in the Hong Kong market on the next trading day.
What are the trading hours?
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Singapore (Mon – Fri) |
Full Day Session |
04.15pm – 06.30pm |
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Half Day Trading |
02.15pm – 04.30pm |
For more information, please visit https://globalmarkets.poems.com.sg/markets-we-offer/hong-kong-pre-ipo/
Please refer to some news article/prospectus links on Ant Group:
https://techcrunch.com/2020/07/14/ant-alibaba-1-3-billion-users/
https://www1.hkexnews.hk/app/sehk/2020/102484/documents/sehk20082500535.pdf
https://www.businesstimes.com.sg/banking-finance/jack-mas-ant-group-files-for-ipo-in-hong-kong-and-shanghai
Jason holds a Bachelor’s Degree in Banking and Finance from Singapore Institute of Management, University of London and has previous experience in advisory services for investment and insurance products. He joined Phillip Securities in 2016 and is currently part of the Global Markets Day Trading Team, providing trade execution support to both internal and external customers for the Asian Markets.
