Five Chinese funds targeting Ant Group’s upcoming stock listing have raised approximately USD 9 billion cumulatively from more than 10 million retail investors.
The rush also underscores the marketing influence of Ant’s online payment platform Alipay, the sole third-party distributor of the five mutual funds that threatens to disrupt traditional fund sales models.
Ant, Alibaba Group’s fintech arm, aims to raise about USD 35 billion in a dual listing in Hong Kong and Shanghai’s STAR Market, expected in October, in what could become the world’s largest IPO. The five funds launched on 25 September 2020 to raise USD 1.78 billion each and invest up to 10% of their assets to buy Ant’s IPO shares as strategic investors.
The successful fund sales could give a boost to Ant’s rapidly growing wealth management business. Revenue from this business segment jumped 56% during the first half of 2020, and Ant’s fintech platform has facilitated investments worth over USD 592 billions.
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