Ant Group’s historic IPO has been stalled, likely cutting the company’s valuation in half. Ant’s IPO has been pushed back at least six months, according to China ETF issuer Kraneshares.
Regulators halted the company’s IPO on Nov. 3 and Alibaba shares have dropped approximately 17% since. According to Brendan Ahern, chief investment officer of Kraneshares, another attempt at listing is unlikely for at least six months. Ahern also said that there is “more to the story than meets the eye.”
New Regulations Halt IPO
Five days before the company’s IPO, Chinese officials said Ant Group did not meet “certain regulatory and disclosure requirements.” With this announcement, Ant Group’s original $300 billion valuation will likely be cut in half. China has only just begun to “ratchet up” re…