3rd November, 2020, 6:45 AM
Ant Group Listing on 5th Nov! Pre-IPO On 4th Nov On Poems, Some Things To Know!
Ant Group started out as Alipay, a digital payment platform that millions and millions of Chinese use to buy stuff online through Alibaba and other online stores. To date, it has more than 1.3 billion global users and is still growing!
If you been to China, and step into shops and restaurant you’ll notice that most ppl in China uses alipay to pay for their purchases. Back in early 2018 when i was Shanghai, i noticed most shops have the Alipay signage whenever i make my payment which was kind of new to me as back then Singapore digital payment wasn’t that mature yet. China in terms of digital payment is way ahead of the curve and the rest of the world is catching up. And guess what, Singapore accepts Alipay too!
Ant Group’s Businesses
1.Yu’e Bao (Ant’s investment platform allows users to invest their money directly in money markets, and is already the world’s largest money market fund.),
2.Sesame Credit(Ants’ credit score system, gives users a way to get financing, lending, buy a house or car immediately based on their payment record, with over 10 million users getting credit even if other banks have given them a poor credit score.),
3. Ant Fortune, (Ant’s investment supermarket, gives financial institutions a place to reach all Ant users and to educate and serve them with their investment products.)
4. Xiang Hu Bao (Xiang Hu Bao, an online mutual aid platform introduced by Alipay, has attracted over 150 million participants since it was launched in oct 2018, helping health protection in China become more inclusive by making it more accessible especially for the lower income and those living in rural areas.
5. MYBANK (Since launching in 2015, MYbank has served 29 million small and micro enterprises, and recently announced a plan for the next 5 years to support 10 million more SMEs and 40 million female business owners, through supply chain financing and rural lending.)
6. Ant Financial cloud and so much more that it will be impossible to list it all here! Reading up on it just blows our mind!
Growth In China Digital Payments
Alipay is the largest digital payments services provider as measured by Total payment volume (TPV) in China, according to iResearch.
Innovations of Alipay app is synonymous with digital payments in China. The app has allowed Alipay to deliver unrivalled value and convenience to our customers, which has led to wide acceptance and popularity of e-wallet and massive transaction volumes. According to the prospectus, it has 711 million monthly active users and more than 80 million merchants today.
Ant Group has created a powerful -eco system which goes beyond just a digital payments system.It contains more than 1,000 daily life services and over 2 million mini programs. As you can see from the above, you can do almost everything on alipay!
And talking about Economic moat, it looks like Ant Group has a really wide one which is a positive sign!
Largest IPO In History!
Yup! It’s the biggest IPO in history, surpassing Saudi Arabian oil giant Aramco which raised USD$29.4 billion.
Ant Group is 872 times oversubscribed and will be raising around US$34.5 billion and based on the IPO price of HK$80 , it will be valued at around US$313billion. This would make Ant more valuable than all the other banks in China and even bigger than Citigroup and Bank of America. Now imagine, if Ant pops 10% on the first day that means the value of the company jumps by another US$31 billion!
With plans to further innovate and expand its reach with the proceeds from the listing offerings, Ant group is one of the most watch IPO in 2020
TRADE Ant Group on Poems one day (4th Nov) before the official listing date with our Hong Kong Pre-ipo market!
What is Hong Kong Pre-ipo
Ant Group will be listed both on Shanghai’s STAR Market and the Hong Kong Market (ticker : 6688)
The Hong Kong Pre-IPO trading market is a channel provided by Phillip Securities for customers to trade Hong Kong shares one day before their official listing in the HKEX. Phillip Securities is the first broking house in Singapore and Hong Kong to offer customers the Pre-IPO trading channel.
Customers can login to POEMS 2.0 and trade under the Hong Kong Pre-IPO tab. Shares bought in the Hong Kong Pre-IPO market can be sold in the Hong Kong market on the next trading day.
What are the trading hours?
|Singapore (Mon – Fri)
||Full Day Session
||04.15pm – 06.30pm
|Half Day Trading
||02.15pm – 04.30pm
*The performance of stocks in the Pre-IPO trading session should not be considered as an indicator of its price and demand in the official trading session.*
For more information, please click HERE
Our Concluding Thoughts
Ant Group has a brand Monopoly and dominates the China’s digital payment. More than half of the digital payment goes to alipay. It has an amazing network and with so many users and merchants supporting Ant Group, this will allow them to continue to grow and tap on their wide network.
Ant Group unlike most IPO like Uber, snowflake is profitable already! So that’s one plus point. We’ll be wanting to get our hands on Ant and so it’s important to see how it will open on 4th nov if you’re interested in the Pre-ipo market. Already news source has reported that Ant Group trades at 50% premium in the gray market which puts it at HK$12. With such a jump the fear of missing out (FOMO) might set in and it’s very natural to want to chase!
So what can one do? Remember in investing, we never go in all at one time! It is important to scale in and not all in!
Depending on the opening price, if you’re really scared to miss out go in about 20% of ur allocated fund for this stock. If the price runs further at least you’re in. If it retraces, (remember facebook crashed after it got listed, but look at where it is now) then at least you still have some bullets to take a position. Be patient and remember you’re in it for the long term. A range of HK$100 seems like a good entry to nibble, but let’s wait and see how it moves ya.
Lastly, Alibaba owns about 30% of Ant Group so one consideration is to have some exposure to Alibaba if you do not have any yet.
Contact Us if you’ll like to know more about Ant Group.