Jack Ma’s Ant Group IPO Suspended Causing A Huge Loss.
Jack Ma’s Ant Group IPO which was set to raise $34billion has been suspended.
The online payment platform, Ant Group, listed its shares over a week ago in the Hong Kong and Shanghai Stock Exchange Market with hopes to raise $34billion which everyone thought would be the world’s largest IPO.
Following the events of its listing, Chinese regulators put a halt to the highly anticipated IPO just a few days before its shares were scheduled to start trading in Hong Kong and Shanghai.
Jack Ma and other Ant executives had been called in for a supervisory interview by the Chinese central bank and the Chinese government officials for talks on Monday.
According to reports, changes were made in the regulatory environment of the Shanghai Stock Exchange which put the Ant Group in a situation where they no longer meet “listing conditions or information disclosure requirements”. Following the event, the Ant Group has suspended its IPO.
Media reports speculate that the meeting may have been an opportunity for the Chinese officials to address some comments made by Jack Ma at a fintech conference last month.
At the conference, the tech billionaire called out Chinese regulators for stifling innovations by being too risk averse. In a statement, he said, “To innovate without risk is to kill innovation. There is no innovation without risk in the world”.
Apparently, his statement didn’t sit too well with the Chinese regulators causing them to take action to show Jack Ma who the boss is.
Following the turn of events for the company, Alibaba shares dropped by almost 10% in Hong Kong after the news of the IPO suspension and the tech billion, Jack Ma, lost about $3billion.
As of now, there is no information as to if and when the IPO will resume.