The World'S Largest IPO Is About To Start: Ant Group'S IPO Price Is 68.8 Yuan / Share, And The Social Security Fund Earns 5.4 Times In Five Years

The world's largest IPO is about to be born in a shares!

On the evening of October 26, the initial inquiry announcement of ant IPO was published on the official website of Shanghai Stock Exchange, which showed that the IPO price of ant A shares was determined to be 68.8 yuan / share. The issue price of Hong Kong shares was also announced on the same day, at HK $80 per share, which was basically the same as that of a shares after excluding the impact of exchange rate.

According to the IPO plan of H + A, the total number of new shares to be issued by H + a will not exceed 1.7 billion of the total IPO size of ant group.

Based on this issue price, ant group A + H raised 229.7 billion yuan, equivalent to about 34.3 billion US dollars. Previously, the largest IPO in the history of global capital market was created by Saudi Aramco, which raised 29.4 billion US dollars, and the total amount raised by ant group reached a new high.

With the announcement of the issuance announcement, ant group's strategic investor lineup in the IPO of the science and technology innovation board was also exposed for the first time. Covering 29 top investors at home and abroad, including top sovereign funds, domestic top insurance companies, banks, large state-owned enterprises and private enterprises, etc., will bring stable long-term capital for a shares.

The market value of the issue is 2.1 trillion yuan

Ant group's pricing has been affecting the heart of the market. The offering price of 68.8 yuan / share falls within the range of 68 yuan - 69 yuan quoted by institutions previously disclosed by informed persons. The market is quite concerned about whether the price is expensive or not?

According to the announcement, the price earnings ratio corresponding to this price is 123.25 times. If earnings per share is calculated by dividing the net profit attributable to the parent company after deducting non tradable assets in 2019 by the total share capital after the issuance without considering the over allotment option, the corresponding P / E ratio is 153.69 times.

As of October 23, the average static P / E ratio of the Internet and related service industries released by China Securities Index Co., Ltd. in the latest month was 38.63 times. Compared with comparable listed companies, Alibaba's static P / E ratio is 39.24 times (after adjustment, the same below), and Tencent holdings is 49.09 times.

"Some are still too high for the digital market, but it's impossible to imagine that China's digital life can start to rise a little." According to a well-known investment bank.

The issue price corresponds to the company's valuation.

According to the reporter's calculation, the corresponding issuance market value of ant group is 68.8 yuan / share, which is 2.1 trillion yuan, equivalent to about 312 billion US dollars.

According to public information, the valuation level of ant group after the completion of round C financing in June 2018 is about US $150 billion. In two years, valuations have doubled.

After the issue price is determined, the scale of ant group's fund-raising is also revealed. According to 68.8 yuan / share, ant raised 114.896 billion yuan of A-share without considering the over allotment option.

Previously, investors are more worried about ants, the "giant" listed on the market after the impact. However, it is worth noting that ant's initial strategic placement of a shares is 1.34 billion shares, accounting for 80% of the initial issuance of a shares. This part of the capital comes from the over-the-counter incremental funds and lengthens the period of strategic placement.

It is generally believed that the "siphon" effect brought about by the listing of ants may not be significant.

According to the judgment of the strategy team of GF Securities, the capital impact of ant listing is mainly expected, but the pessimistic expectation may be quickly digested in advance, which is not the core trading logic of the market. Secondly, according to the calculation of the reduction of transaction volume on the listing day, the actual liquidity impact is very small. The core logic lies in the compression of non restricted shares, the increase of valuation before issuance (compression of the secondary market premium) and the existence of H At the same time, under the limited liquidity, the valuation premium of other new shares may be lowered in the near future, and the valuation differentiation of stock stocks on the scientific and Technological Innovation Board will be intensified.

Luxury shareholder lineup

From the inquiry point of view, the rapid growth and good uplink space make ant IPO widely sought after by the market.

In addition to Alibaba previously disclosed, ant's strategic investors in the science and Technology Innovation Board include: National Social Security Fund, CIC, Canada Pension, Singapore government investment, Temasek, Abu Dhabi Investment Authority and other global sovereign funds; insurance companies such as national life insurance, PICC, Taiping, China Re, sunshine and Taikang; and large state-owned enterprises such as PetroChina, China Merchants Group, Minmetals and COSCO Shipping 。 In addition, BOCOM international is also a strategic investor.

Among them, the national social security fund's investment in ant group has attracted market attention. According to the national social security fund, the additional subscription amount of ant group is 100 million yuan.

On October 25th, vice president of the national social security group called Chen Wenhui more money for the people's pension fund.

In fact, in 2015, the ant group subscribed for 7.5 billion shares in the social security fund. According to the issue price of a shares, the current value of this investment has exceeded 48 billion yuan, with an increase of nearly 5.4 times in five years.

According to an analysis of a senior investment bank, ant's listing on the science and Technology Innovation Board will help expand the investor base of the board. More qualified investors will attract more high-quality objects to be listed on the science and technology innovation board, and then mature institutional investors will lead to the issuance and pricing, eventually forming a virtuous circle.

Many securities companies predict that because the price is cheaper than expected and the market sentiment is warm, ant's "new" will be more competitive than expected. From the latest market news, "rush buying" has begun.

On the evening of October 26, ant group's Hong Kong IPO started only one hour, and the H-share institutions had oversubscribed, setting a new market record. It is reported that most of them are large orders of US $1 billion. According to people familiar with the matter, orders from international investors poured in after ant's pricing was announced.

In terms of "a share" and "individual share", it is about RMB 22.9 billion. According to the announcement posted by the Shanghai Stock Exchange on the evening of October 26, the total amount of ant's preliminary inquiry is expected to exceed 76 billion shares, and the overall offline subscription multiple reaches 284 times, which shows the degree of demand.

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