|Investors scurry to get in on Ant Group's record $35B dual-listed IPO|
Oct. 23, 2020 9:45 AM ET|About: Alibaba Group Holding Limited (BABA)|By: Brandy Betz, SA News Editor
Fintech Ant Group (NYSE: BABA) is reserving 80% of its Shanghai IPO shares for institutional investors, leaving smaller investors scrambling to secure a spot.
Smaller Chinese investors are turning to Shanghai's Regan Fund Management Co and other firms to help acquire shares in that arm of the offering, which Regan Fund says is easier to get in on than the Hong Kong arm.
The institutional investors who have a spot include Alibaba, which plans to buy 22% of the shares on offer.
STAR Market listings typically only set aside 19% for such buyers, according to Refinitiv data.
Some of Ant's strategic investors will have lock-up periods longer than the typical year, another unusual move.
On the Hong Kong side of the deal, Bloomberg sources say that T. Rowe Price, UBS, and Fidelity Investments parent FMR are considering investments worth several billion dollars.
Ant Group is reportedly seeking $35B in the dual listing, creating the world's largest IPO. The Hong Kong portion is expected to price as soon as October 29.