More Than 2 Trillion "Big Mac" Ant Group Is Ready To Go

In the evening of October 21, China Securities Regulatory Commission (CSRC) released a news that ant group had approved the initial public offering of shares on the science and Technology Innovation Board of ant group. That night, ant group published the offering arrangement and offering documents in Shanghai Stock Exchange.

According to the arrangement, ant group will hold an analyst roadshow on October 22; conduct preliminary inquiry on October 23; determine the issue price of a shares on the 26th, and strategic investors will determine the number and proportion of the final allocation; conduct an online roadshow on the 27th; purchase on the 29th; and announce the winning bid rate on the 30th.

Ant group landing on the science and technology innovation board, will be the first Internet giant company ushered in a share. From the global market point of view, the head of the Internet companies have a very positive role in driving the stock market. In the view of the industry, after landing on the science and technology innovation board, ants are expected to trigger a demonstration effect in a shares, attracting more high-tech companies to choose a shares.

With the listing of ants entering the final issue pricing stage, its valuation has been paid attention to by the market again. On October 22, a media report said that the latest report showed that ant group's valuation rose to 380 billion US dollars to 461 billion US dollars, equivalent to about 2.53 trillion yuan to 3.07 trillion yuan. The IPO value of ant group was raised to about $2800 billion.

The further improvement of valuation, on the one hand, shows the popularity and recognition of ants by the market; on the other hand, the impact of the landing of a trillion "Big Mac" on the market is still one of the most concerned issues for investors. 、

The further improvement of valuation not only shows the popularity and recognition of ants in the market, but also shows the attention of investors to the market. Visual China

80% strategic placement

According to the updated prospectus of ant group, ant group will issue no more than 1.67 billion new shares in a shares and H shares respectively, and the total amount will not exceed 11% of the total share capital after the issuance (before green shoes). Among them, 1.34 billion shares were initially allocated to a shares, accounting for 80% of the initial issuance of a shares and 69.57% of the total number of shares issued after "green shoes", setting a historical record on the science and technology innovation board.

According to the issuance plan, Zhejiang tmall Technology Co., Ltd., a wholly-owned subsidiary of Alibaba group, will participate in the strategic placement of the IPO as a strategic investor and subscribe for 730 million shares. Other strategic placing objects include: closed-end funds of strategic placement ants, sponsor institutions and long-term investors who meet the requirements.

The 21st century economic reporter found that increasing the proportion of strategic placement is a routine operation of large cap stocks. Since this year, Beijing Shanghai high-speed railway, SMIC international, Jinlong fish, CICC and other large cap stocks with raised capital of more than 10 billion have been issued. These projects have arranged a large proportion of strategic placements, which are directly oriented to the market, with a limited scale.

For ant to increase the proportion of strategic placement, industry insiders believe that this may consider the market's bearing capacity, which is conducive to enhancing investor confidence and reducing stock price volatility after listing.

In order to further stabilize market confidence, ant also extended the period of strategic rationing. Strategic investors, including Alibaba group and the world's six major sovereign funds, need to promise that among the stocks to be allocated this time, 50% of the shares will be restricted for 12 months, and 50% of the shares will be restricted for 24 months.

According to the provisions of the science and technology innovation board, strategic investors should implement a sales restriction period of no less than 12 months. Ant's requirement is the most stringent arrangement for the sales restriction period of war distribution since the establishment of the science and technology innovation board, which also shows the recognition of the development potential of ants by strategic shareholders.

In fact, ant group's strategic placement also gives ordinary investors a piece of the pie. Previously, the five ant battle matching funds sold in Alipay channel had been sold out in the evening of October 8, with a total of more than 10 million subscribers.

In addition, ant also set aside 334 million shares for institutional and individual investors in the initial offering arrangement. According to the arrangement, the online offering will be conducted through the trading system of Shanghai Stock Exchange. The online subscription time is October 29, the payment date is November 2, and the stock code is 688688.

Rising valuations

Ant group's valuation has been affecting the heart of the market.

Ant group submitted its listing application on August 25, when it was reported that its a + H jointly raised about $30 billion, with a listing valuation of about $225 billion. Less than a month later, in mid September, it was reported that ant a + H planned to raise more than 35 billion US dollars, and its listing valuation was raised to 250 billion US dollars.

According to market news on October 16, ant group plans to raise its IPO valuation target to at least $280 billion due to strong demand, which is at least 12% higher than the previous valuation target of $250 billion.

On October 22, the latest market news showed that the investment bank raised the valuation expectation of ant group, believing that it would reach 380 billion US dollars to 461 billion US dollars, equivalent to about 2.5 trillion yuan to 3.1 trillion yuan. At its most undervalued value of $380 billion, it is also $100 billion higher than the previous valuation of $280 billion.

"If according to the latest valuation, compared with Alibaba's market value of 800 billion US dollars, ant's valuation has a big bubble." Zhang Xiaorong, President of the Institute of deep science and technology, former senior vice president of a securities company and chief Internet analyst, told reporters.

From the current news, the above valuation is expected to come from the institutional side, not the final pricing, but still has relevance with the final pricing of the company. And the rising valuation expectations also show that the market is hot for ants.

The implied situation is that although the price is high, these institutional investors are still striving for the opportunity to invest in ant group.

"Judging from the current news, the institutions may be eager to get the amount of valuation increase." A senior reporter who has been on the market for a long time expressed concern about ants in the 21st century.

"The ant valuation data that came out before will be relatively better, ranging from $150 billion to $200 billion. If the price is too high at the time of issuance, it is not particularly beneficial to the trend of the secondary market after its listing. In fact, with a relatively low issue price, it will be better for the whole index or for the market to rise steadily after listing. "

From the current valuation given by the mainstream securities companies in China, the value of ants is no more than 2.5 trillion.

Reporters found that Guoxin Securities gave a valuation range of 1.7 trillion to 2.5 trillion yuan; China Merchants Securities gave a valuation range of 1.3 trillion to 2.2 trillion yuan; Societe Generale Securities gave a valuation of about 1.7 trillion yuan; Zhongtai securities gave a valuation range of about 1.9 trillion to 2.5 trillion yuan; Morningstar stock research published a report on ant group's valuation of 2.45 trillion Hong Kong dollars (equivalent to 2.1 trillion yuan) Open source securities give ant group the corresponding valuation range of 1.69 trillion yuan - 2.53 trillion yuan.

A problem immediately after valuation is the impact of ants on the market.

GF Securities forecasts that by comparing with SMIC, the impact of ant group's A-share listing may be digested in advance, and the impact of ant's listing expectation may be greater than that of SMIC, but the capital impact on the day of listing is controllable.