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Oct. 22, 2020, 12:23 p.m. EDT

Alibaba says it will buy 22% of Ant Group shares in IPO

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By Emily Bary

Alibaba Group Holding Ltd. /zigman2/quotes/201948298/composite BABA -0.23% announced in a Wednesday afternoon filing that it has agreed to subscribe for 730 million A shares in Ant Group Co. Ltd.'s upcoming initial public offering. With Ant initially planning to offer 1.67 billion A shares on the Shanghai Stock Exchange and 1.67 billion H shares on Hong Kong's stock exchange, Alibaba's agreement covers about 22% of shares initially offered. Ant Group will also allow underwriters to purchase additional shares in the both offerings, with this over-allotment option representing no more than 15% of the number of shares initially offered. Alibaba currently holds ordinary shares of Ant Group and class C shares of Ant International Co. Ltd., a subsidiary, which together amount to 33% equity interest in Ant Group "assuming the completion of the redemption and subscription arrangement." The filing noted that Ant International will redeem all class B and class C shares and that Ant Group will issue 3.3 billion H shares to holders of class B and class C shares of Ant International, including 1.2 billion H shares to Alibaba. U.S.-listed shares of Alibaba are off 0.3% in Thursday trading. They've gained 22% over the past three months as the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.56% has risen 4.8% and as the KraneShares CSI China Internet ETF /zigman2/quotes/205873167/composite KWEB -0.92% has increased 7%.

/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 270.11
-0.63 -0.23%
Volume: 25.32M
Nov. 23, 2020 7:00p
P/E Ratio
39.12
Dividend Yield
N/A
Market Cap
$706.36 billion
Rev. per Employee
$622,130
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/zigman2/quotes/210599714/realtime
US : S&P US
3,577.59
+20.05 +0.56%
Volume: 2.51B
Nov. 23, 2020 5:02p
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/zigman2/quotes/205873167/composite
US : U.S.: NYSE Arca
$ 75.54
-0.70 -0.92%
Volume: 1.27M
Nov. 23, 2020 8:00p
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