Home Technology Alibaba shares drop 8% after Jack Ma's Ant Group and regulator squash discuss of revived IPO

Alibaba shares drop 8% after Jack Ma's Ant Group and regulator squash discuss of revived IPO

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Alibaba shares drop 8% after Jack Ma's Ant Group and regulator squash discuss of revived IPO

Ant Group, based by billionaire Jack Ma, scrapped its IPO in November 2020 after regulators flagged issues with the corporate. Since then, the corporate has been ordered to rectify its enterprise. Ant Group mentioned {that a} revived IPO shouldn’t be on the playing cards but.

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Alibaba shares dropped 8% on Thursday after monetary affiliate Ant Group mentioned it presently has no plans to revive an IPO, and a key regulator mentioned it had not carried out an analysis on a possible itemizing.

The deliberate IPO of Ant Group, which is managed by billionaire Alibaba founder Jack Ma, was pulled in November 2020 after regulators flagged issues with the corporate. The twin itemizing in Hong Kong and Shanghai would have been the most important IPO in historical past.

Since then, Ant Group has been ordered by regulators to rectify its enterprise to adjust to Chinese guidelines, together with establishing a monetary holding firm.

On Thursday, Bloomberg reported Chinese monetary regulators have commenced early stage discussions about reviving the IPO, citing individuals aware of the matter. Reuters reported that Chinese management has given the inexperienced gentle for an inventory.

But Ant Group mentioned there aren’t any plans for an IPO.

“Under the guidance of regulators, we are focused on steadily moving forward with our rectification work and do not have any plan to initiate an IPO,” a spokesperson for the corporate informed CNBC on Thursday.

The China Securities Regulatory Commission, which is able to greenlight listings, mentioned in an announcement Thursday it had not carried out “evaluation and research work” relating to a possible Ant Group IPO. The CSRC added that it helps eligible platform firms going public at residence and overseas.

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