Ant announced surprise move to buy back 7.6% equity interest at valuation much lower than abandoned IPO

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Ant Group announced a surprise share buyback that values the fintech giant at $78.54 billion, well below the $315 billion touted in its abandoned IPO in 2020.

Ant had proposed to all of its shareholders to repurchase up to 7.6% of its equity interest at a price that represents a group valuation of about 567.1 billion yuan ($78.54 billion), it said in a statement on Saturday.

That represents a steep 75% discount to the $315 billion valuation in 2020 for what was set to be the world’s largest IPO had it not been derailed at the last minute by Chinese regulators.

“The repurchased shares will be transferred into Ant Group’s employee incentive plans to attract talents. The repurchase proposal will also provide a liquidity option for the company’s investors,” it said.

The news came one day after Ant was fined $984 million, which should end a years-long regulatory shake-up of the company.