Billionaire Jack Ma's Ant Group IPO could be history’s largest offering. The Chinese fintech giant plans to raise over $30 billion. U.S. retail investors won't have direct access to the offering. The company plans to list its stock simultaneously on the Hong Kong and Shanghai exchanges. Here’s how U.S. investors can still buy the Ant Group IPO.
When is the Ant Group IPO date?
Ant Group plans to raise about $30 billion in an IPO. Although the company's IPO date hasn't been set, it could happen in the next few months. Ant Group hasn't priced its stock for the coming IPO yet. Morgan Stanley, JPMorgan Chase, and Citigroup are overseeing the listing.
Ant Group is a China-based financial technology company. The company separated from Chinese e-commerce giant Alibaba in 2014. Ant Group operates the popular Alipay mobile payments app. Alipay has more than 1 billion annual active users as of June 30.
Ant Group reported a net profit of $3.2 billion on total revenues of $10.6 billion in the first six months of 2020. In the first six months of 2019, the company reported a net profit of $278 million on total revenues of $7.7 billion. The amount represents over a 100 percent year-over-year growth in profit.
Where is the Ant Group IPO listing?
The Ant Group IPO will be simultaneously listed on the Hong Kong and Shanghai exchanges. A listing on the Nasdaq or the NYSE would be risky due to rising tensions between the U.S. and China.
Can U.S. investors buy Ant Group stock?
U.S. retail investors can’t invest directly in the Ant Group IPO because the stock won’t list in the U.S. However, there are various indirect ways that U.S. investors can still invest in one of the most exciting and biggest IPOs of all time. They can invest through an ETF that invests in international IPOs.
How to invest in the Ant Group IPO
U.S. retail investors can indirectly invest in the Ant Group IPO. They can buy the Renaissance International IPO ETF, which invests in international IPOs. Over half of the ETF's holdings are in Chinese stocks. The Renaissance International IPO ETF will likely gain exposure to the Ant Group IPO.
What are Ant Group ETFs?
The ETFs that will likely add the Ant Group IPO to their portfolio include the Renaissance International IPO ETF, the iShares MSCI Hong Kong ETF, the iShares MSCI China ETF, and the Invesco China Technology ETF.