One of the biggest IPOs faces a setback

Last week, Jack Ma, a prominent figure in Chinese business and former main shareholder in Alibaba, announced that Ant Group, a FinTech company he currently leads, would soon launch its IPO. The IPO was anticipated to break records, with projected profits reaching $34.5 billion post share price setting. However, an intervention from China has halted this significant investment opportunity.

Late on Monday, Jack Ma, along with Ant Group’s top executives Eric Jing and Simon Hu, were called for a meeting with the China Securities Regulatory Commission. Following this meeting, both the Shanghai and Hong Kong stock exchanges declared the postponement of the IPO citing issues within Ant Group.

As per the CSRC’s statement, Ant Group faced “significant issues like the alterations in the financial technology regulatory landscape.” These problems could potentially hinder the company from meeting listing criteria or fulfilling information disclosure mandates.

Ant Group has not yet issued any statements regarding the situation. Nevertheless, Alibaba, holding a 33% stake in Ant Group, affirmed their commitment to support Ant Group in navigating the evolving regulatory atmosphere and ensuring the IPO progresses smoothly.

“We are dedicated to assisting Ant Group in aligning with and embracing the changing regulatory environment,” a spokesperson stated. “With full confidence in the capabilities of our Ant Group colleagues, we strive to not just meet but exceed expectations and uphold our responsibility towards society.”