The Shanghai Stock Exchange announced on Tuesday that it has suspended Ant Group’s $34.5 billion initial public offering due to glaring changes in the company’s regulatory environment, placing the fintech giant’s world record-setting IPO in jeopardy.
Ant Group’s $34.5 billion initial public offering (IPO) in Shanghai and Hong Kong has been suspended on Tuesday due to glaring changes in the company’s regulatory environment, placing the fintech giant’s world record-setting IPO in jeopardy.
In a statement, China Securities Regulatory Commission said that billionaire tycoon and Ant’s co-founder Jack Ma was summoned and interviewed by the country’s central bank, together with three other top financial regulators.
The fintech giant had been aiming to raise $34.5 billion through a joint listing on the Hong Kong and Shanghai stock exchanges. The trading is scheduled to begin on Thursday, Nov. 5.
However, the Shanghai Stock Exchange decided to suspend the company’s proposed offering due to being unable to meet conditions for listing.
“Recently, your company’s actual controller, chairman and general manager have been jointly summoned and interviewed by the relevant regulatory authorities,” the Shanghai Stock Exchange said, according to the translation of CNBC.
“Your company has also reported significant issues such as the changes in financial technology regulatory environment. These issues may result in your company not meeting the conditions for listing or meeting the information disclosure requirements.”
Ant also released a statement, saying that the listing of its Hong Kong shares would also face suspension.
An official filing with the Shanghai Stock Exchange is expected to be issued soon.
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