Ant Group Clarifies Ties To Jack Ma And Alibaba
In response to the Shanghai Stock Exchange questions about its links with Jack Ma and Alibaba Group Holding Ltd., China's biggest mobile payments company, Ant Group, outlined its ownership structure as it moves toward an upcoming blockbuster IPO, China Securities Journal reported.
Since July, Ant Group, an affiliate company of the Chinese Alibaba Group, had started the process for a dual listing in Hong Kong and on Shanghai's Nasdaq-like STAR market, in what sources have said could be the world's largest IPO and is slated to occur next month. It would raise a world record of $30 billion.
The filings Ant Group sent to the Shanghai exchange regulator on Monday covered questions including the company's shareholding structure, governance, operation model, data security and independence.
Ant clarified in the filings that Alibaba Group, holding 32.65 percent of Ant Group shares, is not the actual controller. Alibaba Group founder, Jack Ma, indirectly controls 50.5 percent of Ant's share, placing him in virtual control of Ant Group.
Though Ant and Alibaba share strategic synergies, the fintech firm has set up sales, operations, and research and development teams for its own needs, and formed a comprehensive business system. The two companies do not compete against each other or have major related-party transactions that would affect Ant's integrity, according to Ant's statement.
Sixteen analysts forecast the average share price in 12 months at $246.27 with a high forecast of $323.00 and a low forecast of $192.00, according to Tipranks.
