The Chinese e-shopping giant Alibaba Group lost more than $ 60 billion of its market value in one day due to the repercussions of the sudden decision announced yesterday to suspend the offering of the shares of its Ant Group company for initial public offering on each of my exchanges. Shanghai and Hong Kong, due to legal problems with the Chinese government.
According to what was reported today by the website “Twitter”, the market value of the “Alibaba” group was $ 841 billion by the end of yesterday, but it fell dramatically to $ 780 billion only after the announcement of the decision to suspend the offering. The decision also led to a drop in Alibaba’s share price by 8% in one day.
“Ali Baba” had established “Ant Group” in 2014 to specialize in financial technology services, “Fintech”, until it became the most valuable company in the world in this field. With the success of Ant Group, its shareholders multiplied, and Alibaba’s share in Ant Group is now estimated at about a third.
Ant Group owns the largest digital payment platform in China, Alipay, which serves more than one billion users and 80 million merchants, with a turnover of 118 trillion Chinese yuan in June 2020.
The Ant Group IPO was set to be the most valuable in history, as the company was expected to earn $ 34.5 billion – the highest return on an initial public offering (IPO) ever – through a dual listing on the Shanghai and Hong Kong exchanges.
However, the Chinese government suspended the offering process less than 24 hours ahead of schedule, dashing the hopes of Jack Ma, the famous Chinese billionaire and founder of “Alibaba”, to add $ 300 billion to the market value of his group to enter the trillion dollar club.
Instead of “Alibaba” entering the club of trillion companies, the Chinese government’s decision came to wipe out $ 60 billion from its market value in one day.
Western economic analysts cite a real reason for the sudden decision by the Chinese government to suspend the IPO of Ant Group shares, which is its concern about the frighteningly growing influence the company has become in the financial services market in China. Not allowing any private company to expand to the point of having influence that rivals that of the government is one of the pillars of the economic thought of successive Chinese governments.
In this context, it suffices to know that the total value of the initial public offering applications for the shares of “Ant Group” before its suspension approached in China alone only 3 trillion dollars. The IPO was highly anticipated by investors in China and abroad in light of the impressive success of the company and its overwhelming influence.
Follow the economic statement via Google News
Print
Email
Facebook
Twitter
LinkedIn
Pin Interest
Whats App
These were the details of the news The ant enters the cave of “Ali Baba” and withdraws $... for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
