China suspends Ant Group’s record $34.5 billion IPO

By Sunniva Kolostyak

The Shanghai Stock Exchange has suspended the listing of Ant Group following closed-door conversations with founder Jack Ma, days after new FinTech regulations are introduced.

The listing was set to break records as the biggest stock market debut of all time, with Ant Group, the runner of Alipay and the highest-valued FinTech in the world, expecting to sell shares worth over $34.4 billion.

However, according to a statement from the Shanghai Stock Exchange, the Alibaba affiliate no longer meets regulations for financial technology – regulation which was changed a day ago.

The exchange summoned Ant Group’s executive chairman and CEO to a joint regulatory interview ahead of the 5 November listing, and also called on the company to report on ‘material matters’ including the regulatory changes.

The Shanghai Stock Exchange stated that based on the reported material, Ant Group “may no longer meet the conditions for offering and listing, or the requirements for information disclosure”.

“[…] The SSE has decided to suspend the listing of your company. Your company and your sponsors shall make public announcements according to regulations, explain the situations related to the material matters and state that your company is suspended for listing. The SSE will keep in touch with your company and the sponsors.”

In response, Ant Group issued the following statement to its investors: “Ant Group was notified by the Shanghai Stock Exchange today that our A share listing plan on the Shanghai Stock Exchange would be suspended. Consequently, Ant has decided that the concurrent H share listing plan on the Hong Kong Stock Exchange shall also be suspended.

“Ant Group sincerely apologizes to you for any inconvenience caused by this development. We will properly handle the follow-up matters in accordance with applicable regulations of the two stock exchanges.

“We will overcome the challenges and live up to the trust on the principles of: stable innovation; embrace of regulation; service to the real economy; and win-win cooperation. We will continue to serve small and micro businesses and ordinary citizens with our passion, professionalism and commitment for society. We will keep in close communications with the Shanghai Stock Exchange and relevant regulators, and wait for their further notice with respect to further developments of our offering and listing process and disclose in a timely manner.”