Ant Group Taps Goldman Sachs For IPO

Eric Jing, Chief Executive Officer, Ant Group.

Ant Group, the Chinese payments company, has courted investment bank Goldman Sachs to join a handful of financial firms that are expected to help it complete an initial public offering of up to $30 billion. As first reported by CNBC, Goldman Sachs has been hired as a joint lead manager on the Hong Kong section of the public offering. The investment bank is in no way new to managing big public offerings and is more so already a major customer of Alibaba, the Chinese tech giant to which Ant Group was spun out of. Goldman Sachs helped Alibaba raise roughly $13 billion in a Hong Kong secondary listing last year.

Ant Group is expected to raise up to $30 billion in what would mark one of the biggest IPOs in history. Currently, the record for the biggest IPO is held by Saudi Aramco, the Saudi-owned oil giant which raised $29.4 billion in an offering last December. Alibaba itself comes at second place with its $25 billion offering in 2014, of which Goldman Sachs was part of. Ant's biggest business is Alipay, a widely used payments service in China. The company also dabbles in other financial services such as credit ratings, lending, and wealth management. Ant Group recorded $17.4 billion in revenues and $2.5 billion in profit in 2019. The company's mega IPO entails a group of investment banks are expected to work on the deal in progress towards a possible launch later this year.

Photo credit: World Economic Forum / Manuel Lopez, under Creative Commons license