Ant Financial denies IPO delay, against the critics

minutes 2018/08/24 00:42:16
Ant Financial, Alibaba

Aug 24, 2018 (China Knowledge) - Alibaba affiliate, Ant Financial’s public relations director Peng Mei denied on Wednesday it has postponed its initial public offering (IPO), and a timetable is set for listing.

However, it was reported by some foreign media that the Ant Financial IPO program was again postponed, and it will not get listed until the end of 2019, in part because Chinese regulators caution on financial innovations.

It has a big impact on listed internet consumer lenders, whose share prices have tumbled more than 50% from last November till today. Other similar business affected include some 600 peer-to-peer lenders that were closed in the half of 2018.

Ant Financial's last earnings announcement showed it suffered a loss of RMB720 million in the first three months of this year.

Its subsidiary Sesame Credit ceased issuing individual credit rating and will only be used for non-financial purposes, such as credit checks for bike rentals. Recently, Alipay was also required by central bank to raise its reserve funds ratio to 50%. It is facing a further squeeze on profits.

To date the company has completed new rounds of funding up to USD 14 billion, and its valuation reached USD 150 billion on June 9.

Its investors include Singapore’s sovereign wealth fund GIC and Temasek Holdings, Warburg Pincus Investment, Canadian Pension Fund Investment Corporation, Transatlantic Capital Group, Xingbianli and Orbbec.

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