BIG FEES, BRAGGING RIGHTS LOST AS ANT IPO IS FROZEN
The eleventh-hour halt to Ant Group’s record $37 billion listing has not only hurt the firm, but also lead bank China International Capital Corp. (CICC), which likely loses out on a hefty payday and a jump in global investment banking rankings, Scott Murdoch reported for Reuters.
CICC HK had the coveted position of being the only bank to work on both legs of the Hong Kong and Shanghai listing, which would have made it eligible to earn more in fees than other banks on the deal.
League tables published by Dealogic distributing credit for the Ant deal saw CICC shoot to the second spot globally for new listings from fifth, placing it behind Credit Suisse CSGN.S and ahead of Wall Street majors. That would have been CICC’s highest position on the global tables since it topped the rankings in 2009, the Dealogic data showed. CICC, which saw its shares slide 6.5% on Wednesday, did not immediately respond to a request for comment. The Shanghai stock exchange decided Tuesday to suspend the deal just days before its debut after regulators stepped in, prompting Ant to halt the Hong Kong portion of the listing as well.
Equity capital market bankers, who have had a good year including a record third-quarter, were expecting Ant to close out 2020 with a bang. But with the listing suspended, Ant’s army of investment bankers, including those from Wall Street firms, will have to forgo fees as well as bragging rights for having worked on the world’s largest IPO.