Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Ant to refund US$167.7 billion to investors after IPO is suspended

Ant to refund US$167.7 billion to investors after IPO is suspended

Refunds will be given to the 1.55 million Hong Kong investors in two batches; some brokers plan to waive interest on IPO loans.

Hong Kong retail investors who had applied for Ant Group’s record US$39.67 billion IPO will get refunds in two batches, after the fintech giants decided to suspend the offering.

Some 1.55 million small investors in Hong Kong had pumped HK$1.3 trillion (US$167.7 billion) into the initial public offering in a bid to get a slice of the shares, making it the highest amount to be refunded in history.

In the first batch of refunds on Wednesday, investors who had unsuccessfully applied for the shares will see their application amounts credited directly to their bank accounts or will be sent cheques by post, according to Ant’s stock exchange filing on Wednesday morning. The second batch of refunds on Friday will be given to the investors who had successfully won the allotment for the shares in the now delayed IPO.

The refund will include the application monies, as well as 1 per cent brokerage commission, a 0.0027 per cent Securities and Futures Commission transaction levy, and a 0.005 per cent stock exchange trading fee, the filing said.

The development came after Ant Group late on Tuesday night announced that it was suspending its dual IPO on the Shanghai and Hong Kong stock exchanges less than 48 hours before trading was due to start, saying it may not meet listing and disclosure requirements due to changes in the regulatory environment in China.


Ant Group announced a quick refund to Hong Kong IPO investors on Wednesday and Friday.


The surprise delay to the world’s largest IPO came after co-founder Jack Ma, executive chairman Eric Jing and chief executive Simon Hu met mainland regulators and central bank officials on Monday. The regulators had earlier drafted a new set of rules on China’s booming microlending market, which could curb the profits of the country’s fintech giants.

The previous record for the highest refund amount was held by Budweiser Brewing Company APAC, which scrapped its US$9.8 billion IPO in July last year after closing the offer book. Although the company did not announce the amount, brokers estimated it was around HK$38 billion. Budweiser successfully listed on Hong Kong stock exchange two months later after reviving its IPO plan.

In Hong Kong, retail investors had oversubscribed 389 times for the IPO, according to people familiar with the matter.

Banks including HSBC, Bank of China (Hong Kong) and the city’s 600-odd brokerages had extended HK$500 billion of margin financing loans to help investors fund their subscription at an interest rate of between 0.48 per cent to 3.5 per cent.

Three stockbrokers – Bright Smart Securities, Philip Securities and Futu Securities – who had set aside HK$120 billion in margin loans for their customers to subscribe to the Ant IPO, said they would waive part or all interest payment for their clients. The trio are the most active in the IPO loan market.

“We will waive the interest for clients who were allotted shares and will be getting their refund on Friday,” said Louis Wong Wai-kit, director at Philip Securities. “We will let them use the refund for other products.”

Edmond Hui, the CEO of Bright Smart Securities said that it planned to waive the interest as a reward for its loyal customers.

HSBC, which offered HK$150 billion worth of IPO loans for Ant, and Bank of China (Hong Kong), did not reply to a Post query about the interest payment.

Kenia Cheng, a Hong Kong businesswoman who spent about HK$16 million in cash and margin loans from HSBC to subscribe to 200,000 Ant IPO shares, said she was surprised and disappointed at the IPO’s sudden withdrawal.

Cheng said she was told she would get her refund today, but the lender has not yet decided if it would waive her interest and other fees.

“If Ant resumes its IPO, I will still invest in it as I think it is a good company with a lot of potential. However, I will not borrow so much money next time to prevent any potential loss arising from the interest payment,” Cheng said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×