Report
EUR 88.49
For Business Accounts Only
We have provided our thoughts of Ant Group from as early as 2018. We’ve provided further updates since it filed its application proof in Hong Kong. Needless to say, there is a lot to like in the company with the starting point being its sheer scale. Not only is Ant Group the largest third-party payment player in China, it is also the No.1 independent player in each of the three non-payment segments by key operating metrics.
However, there are also concerns on the profitability of its payments business which continues to be a large contributor. In addition, some of the recent uptick in its profits appears to have been driven by one-off drop in expenses which are unlikely to sustain over the medium-term.
In terms of deal structure, this will be the first A+H simultaneous listing, which will easily qualify for all index inclusion. However, the dual listing might lead to delay in inclusion for some indices.
Our previous coverage on Ant Group
Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors
Ant Financial (èš‚èšé‡‘æœ) IPO Early Thought: What’s New About the Listing News
Ant Group (èš‚èšé›†å›¢) IPO First-take: No. 1 fintech from all angles
Ant Group (èš‚èšé›†å›¢) IPO: Numbers suggest it’s more tech than financials
Ant Group (èš‚èšé›†å›¢) IPO: Things to clarify/Questions to ask
Ant Group (èš‚èšé›†å›¢) IPO
Ant Group plans to raise up to USD 30bn via a dual listing on both Hong Kong Exchange and Shanghai STAR board.We have provided our thoughts of Ant Group from as early as 2018. We’ve provided further updates since it filed its application proof in Hong Kong. Needless to say, there is a lot to like in the company with the starting point being its sheer scale. Not only is Ant Group the largest third-party payment player in China, it is also the No.1 independent player in each of the three non-payment segments by key operating metrics.
However, there are also concerns on the profitability of its payments business which continues to be a large contributor. In addition, some of the recent uptick in its profits appears to have been driven by one-off drop in expenses which are unlikely to sustain over the medium-term.
In terms of deal structure, this will be the first A+H simultaneous listing, which will easily qualify for all index inclusion. However, the dual listing might lead to delay in inclusion for some indices.
Our previous coverage on Ant Group
Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors
Ant Financial (èš‚èšé‡‘æœ) IPO Early Thought: What’s New About the Listing News
Ant Group (èš‚èšé›†å›¢) IPO First-take: No. 1 fintech from all angles
Ant Group (èš‚èšé›†å›¢) IPO: Numbers suggest it’s more tech than financials
Ant Group (èš‚èšé›†å›¢) IPO: Things to clarify/Questions to ask
Underlyings
Alibaba (9988 HK)
Ant Group Ltd
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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