China is gradually switching from a tightly controlled IPO system, where every float needs approval, to a more registration-based scheme similar to Western markets, which it piloted by launching Shanghai’s tech-focused STAR last year. Companies raised $10. 3 billion via IPOs on the STAR Market in the first seven months of 2020, making it the second-biggest market globally, behind Nasdaq but ahead of Shanghai’s main board and Hong Kong, Refinitiv data showed.
HONG KONG (Reuters) – China’s Ant Group plans to raise more funds on Shanghai’s Nasdaq-style market than in Hong Kong as part of its up to $30 billion dual listing, people with direct knowledge of the matter said, in a major endorsement of the year-old mainland exchange.
But sources said that while the specific percentage breakdown between the Hong Kong and Shanghai floats was yet to be finalised, Ant, after initial investor feedback, will likely sell more shares on Shanghai’s STAR Market than in Hong Kong.
The IPO’s lead managers have approached many Chinese institutional investors, asking them to invest in the STAR tranche as a strategic investor, potentially committing at least 1 billion yuan to 1. 5 billion yuan ($146 million to $220 million) each and accepting a 12-month lock-up on the investment, said one of the people. Ant declined to comment.
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