<Editor's Pick>118 trillion payment size plus 1 billion users, the secret in Ant Financial's prospectus

Aug 26, 2020 Alibaba Group

Ant Financial's IPO has been in the news for months, and on the evening of August 25, Ant Group filed a listing prospectus (draft filing) with the Shanghai Stock Exchange's STAR Market. The company simultaneously submitted the A1 Application Proof to the Hong Kong Stock Exchange, marking a key step towards A+H listing. This is the first time Ant Finance has fully disclosed the big picture, revenue, and other core data and future plans of the business.

According to the prospectus, Ant Group intends to issue a combined number of new shares in A-shares and H-shares of not less than 10% of the total post-issue share capital of not less than 30,038.97 million shares (before green shoes), implying that not less than 3 billion new shares will be issued.

Although the offering price per share and target valuation has yet to be determined, it is widely believed that Ant Finance will probably set one of the world's largest IPO records in recent years. When Ant Group raised its Series C round in 2018, it was already valued at $150 billion according to published reports. The industry believes that the valuation of Ant Financial's IPO in both places at the same time is more than $200 billion.

Ant Group's full-year revenue for 2019 will be 120.6 billion yuan and net profit will be 18.07 billion yuan, according to the prospectus document. From January to June this year, Ant Financial's revenue was $72.5 billion. As a giant in China's mobile payment sector, Ant Group's total payment transaction volume in China reached RMB 118 trillion in the 12 months to 30 June 2020, accounting for more than 50% of the digital payment market. Meanwhile, Alipay, one of Ant Group's most popular apps, has surpassed 1 billion annual active users.

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