Ant Group is going public in what could become the biggest 2020 IPO (initial public offering) in the world. The affiliate of the Chinese e-commerce giant, Alibaba Group (BABA), revealed on Monday its plans to pursue a simultaneous dual-listing on both the Hong Kong Stock Exchange and Shanghai Stock Exchange’s STAR board.
The long-awaited IPO will help Ant Group expand its investment in technology and innovation while partnering with investors to develop its global market penetration. The IPO will also help Ant Group compete with the likes of Tencent, one of its erstwhile rivals and others.
The group now operates Alipay which millions of shoppers use across Alibaba’s e-commerce networks for payment purposes. With this IPO, investors stand the chance to co-own one of the biggest fintech firms in the entire world.
Ant Group has previously raised a whopping $4.5 billion during a funding round that saw participation from the likes of China Development Bank, Primavera Capital Group, China Investment Corp, and other investors.
Also Read: More Than Money: How to Choose the Right Investor for Your Business
Since then, the company has successfully positioned itself as a major payment gateway in China’s e-commerce ecosystem. With this planned IPO, Ant Group will better position itself for greater exploits in the global fintech space.
The African fintech opportunity
African fintech firms are increasingly building capacity and positioning themselves as major players in the financial service sector, although relatively small when compared to Ant Group.
Join the ANC Trading Community on Telegram
In 2019 alone, African fintechs were responsible for an estimated $2 billion in VC funding. A bulk of those funds went to Nigeria which has arguably become Africa’s proverbial ‘fintech capital.’
Looking at Africa’s fintech trend, an initial public offering is something African fintechs may want to consider taking advantage of.
This will not only be beneficial to them but also bring new investment opportunities for African investors who are constantly in search of new investment opportunities.
