ANT GROUP’S DOUBLE IPO IN HK, SHANGHAI FROZEN
The initial public offering (IPO) of Chinese tech giant Alibaba's subsidiary Ant Group was unexpectedly suspended two days before its scheduled debut, the Shanghai stock exchange announced, Andreas Landwehr reported for Deutsche Presse-Agentur (dpa).
The financial service provider Ant Group, which also runs the popular mobile payment service Alipay, had planned a double debut at Shanghai's and Hong Kong's stock exchanges on Thursday that was expected to raise $37 billion, in one of the biggest IPOs of all time.
The bidding was suspended, however, due to changes in the "legal regulatory environment," the governing body of the Shanghai stock exchange said. This means Ant Group might not be in compliance with the conditions and disclosure requirements for the IPO.
Ant Group announced that the Hong Kong IPO had also been suspended, according to Bloomberg news agency. In an unusual move, Alibaba founder Jack Ma and other top executives were summoned by Chinese regulatory authorities on Monday, after Ma had given a public speech criticizing regulators for stifling innovation and for not paying sufficient attention to new developments. Ma, a member of the Communist Party of China (CPC) is also majority owner of the South China Morning Post (SCMP).