Ant Group Discussion

📊 Investing
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I only found threads requesting this, but I wanted instead to have a place to discuss this.

There is no doubt Ant Group is a great and growing company, but I am curious and intrigued to see how the IPO goes as there is a ridiculous amount of interest, especially from retail Chinese investors who have a lot of money. Check out this article:

So it seems it is oversubscribed by 800+ times and 400+ times in Shanghai and Hong Kong respectively, at an already high valuation and record breaking IPO amount this will be fascinating to watch. Will it soar and keep going? Will it soar and shortly crash to near IPO or lower levels?
And what affect will this have on companies who own their shares where this is Alibaba, Scottish Mortgage Trust and any others.

One things for sure, next week will be interesting.

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In all honesty I’ve given up predicting IPOs or being involved in them.

Even the likes of the banks don’t seem to know how to price them.

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Morning all

Am I right in saying that, although the IPO was last week, Ant Group aren’t open for investment until this coming week…?

Many thanks

JOE.

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And I did not search the forum first… So I will merge this with an existing thread…! :grimacing:

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I believe the IPO is Thursday, but institutional and select few people have already agreed ideas I believe such as Alibaba for 22% of this IPO (taking whole stake to over 30%.

To be honest even chinese people I know are struggling to buy in China so i think its about waiting and buying post IPO, I am not planning too as Trading 212 ISA account wont ever have it im guessing, however through Alibaba i will have indirect exposure.

Not sure if fidelity FCSS fund will get any?

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BABA is a good shout. I’m also in SMT on my SIPP so will have extra exposure there and I’m sure BGCG will add it also.

Looking to buy direct through Interactive Investor eventually though.

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I wont be trading The ANT Group but I will be adding 10% of my portfolio to it. I think this will be a “safe haven” growth stock for the next 20 years. I wont be looking for an entry price. I will buy and forget, the same way I do with other bit company stocks.

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Well this came out of nowhere - " China halts $37bn Ant Group IPO, citing ‘major issues’ "

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Press release. Mentions refund of monies :grimacing:

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Just heard on CNBC that the regulators are currently stipulating a 30% provision against all loans. They based there model on just a few %.

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This is a very interesting development, but based on previous similar things an agreement and changes will be made, ultimately if you are bullish on Chinese economy then you should be bullish on Ant regardless of this news.

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Alibaba is now $250 on the Hong Kong with views on going to below $240 by the end of the week

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Is it because of ANT group saga or because of covid vaccine ?

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Because of the communist party and bring down the power and financial independence that these tech giants have.

It is all over the news

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Yep - hence the drop in BGCG today.

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If its not affecting the bottom line why is the share price falling so much?

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All I will say is this is a great buy opportunity. This should be a $330-350 stock right now, and still growing. Check their singles day sales and the fact China is still growing massively and less virus issues. This is just cold feet for lots of people.

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Very odd though, I don’t understand why people react so quickly to news when the underlying facts of the business are still the same or better

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I would say in large part it is because lots of people are scared/dont understand Chinese govt. They are just exerting some control, but the right wheels may be greased or the right things said by Jack Ma etc and we will go back to normal.

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I’m sure your right I can’t see the Chinese government going too far with this or they will jeopardise any future deals with foreign businesses. Every country has shifted a lot of investment into China why would it benefit them to enforce extreme regulations now.