Ant Group plans to increase IPO valuation target to $280 billion

Ant Group plans to increase the valuation target for its initial public offering (IPO) to at least $280 billion due to strong demand, charging ahead with the sale, even as the Donald Trump administration weighs restrictions on the Chinese fintech giant, according to people familiar with the matter.

The Hangzhou-based company is lifting the target by at least 12 per cent from a previous estimate of $250 billion after initial discussions with investors, the people said. Ant aims to raise about $35 billion in the sale, they said.

Despite the US headwinds, Jack Ma’s Ant is moving ahead with what could be the world’s largest IPO, with same-day listings in Hong Kong and Shanghai, the people said. At $280 billion, Ant would be bigger than Bank of America and three times the size of Citigroup, while its sale would top Saudi Aramco’s record $29 billion raise.

The Hong Kong stock exchange has scheduled an Ant hearing for as soon as next week, pending an approval from the Chinese securities watchdog, a requirement for companies conducting dual listings in China and Hong Kong, the people familiar said. Ant and the Hong Kong bourse declined to comment.

The Hong Kong hearing before a 28member panel of external professionals has been expected for weeks but has yet to happen. If it’s delayed much further, the IPO risks straddling the November 3 US election where some expect a surge in postal ballots to create prolonged uncertainty.