Ant Group plans to raise over $35 billion from its dual-listing IPO. The company has raised the target range to about $250 billion from the previous valuation of $225 billion. The company, led by Jack Ma, would have a higher valuation than all of the U.S. banks except for JPMorgan Chase, which has a market capitalization of over $300 billion. The wave of IPOs has attracted ETFs. Last week was the busiest week for IPOs in over a year.
The BIGGEST IPOs of all time:— eToro (@eToro) September 17, 2020
☑️Saudi Aramco $29.4bn
☑️Agricultural Bank of China Ltd. $22.1bn
☑️ICBC Bank $21.9bn
☑️General Motors $20.1bn
Will🐜Ant Group's IPO be the biggest EVER?
When is the Ant Group IPO date?
Ant Group’s IPO could come as soon as October. The shares would list under a dual listing in Hong Kong and Shanghai. Since the relations between the U.S. and China have soured, many Chinese companies have looked at listing in Hong Kong. Last year, Alibaba shares also listed in Hong Kong.
Ant Group’s IPO could be the largest ever. The IPO would eclipse Saudi Aramco, which listed last year on Saudi Arabia’s stock exchange and raised $29 billion. In 2014, Alibaba became the largest IPO ever. Alibaba held the title for five years until Aramco's IPO.
How to buy Ant Group stock
Since Ant Group isn't listing on the U.S. stock markets, U.S. investors won't be able to buy it like they buy U.S.-listed IPOs. However, there are still two ways that U.S. investors can buy the Ant Group IPO. First, many U.S. brokers like Fidelity and Charles Schwab let their clients invest in Hong Kong stocks. You can buy the Ant Group IPO through these brokers. Second, you can buy the Ant Group IPO through ETFs.
What are Ant Group ETFs?
The Renaissance International IPO ETF, which invests in stocks of newly non-U.S. listed IPOs, could be among the first ETFs to buy the Ant Group IPO. The ETF tracks the returns of the Renaissance International IPO index. After the listing, Ant Group shares could be added to China-focused ETFs like the SPDR S&P China ETF and the iShares MSCI China ETF. However, these ETFs wouldn't be investing in the IPO. The KraneShares CSI China Internet ETF might also have decent exposure to Ant Group shares.
Can you buy an Ant Group ETF on Robinhood?
Robinhood has 90 ETFs available on its platform. Some of the ETFs invest in Chinese stocks including the iShares FTSE China Large-Cap ETF, the iShares MSCI Emerging Market ETF, and the Vanguard FTSE Emerging Market ETF. Some of the ETFs might include Ant Group shares in their portfolio after it's added to the underlying index. However, you can't buy Ant Group shares directly on Robinhood. The Renaissance International IPO ETF, which has the highest probability of investing in the Ant Group IPO, isn't available on Robinhood.