China Suspends Ant Group’s Massive IPO

The world’s biggest initial public offering has come to a halt…

On November 5, Chinese tech giant Ant Group announced plans to raise over $34.5 billion before its IPO in Shanghai and Hong Kong. It was poised to break the previous IPO record of $29 billion held by Saudi Arabia Oil Co.

Today, the Hong Kong and Shanghai stock exchanges announced that Ant Group’s record-breaking IPO has been suspended.

Concerns arose yesterday when Ant Group controller Jack Ma, executive chairman Eric Jing and CEO Simon Hu were summoned and interviewed by regulators in China.

Following the meeting, the IPO was suspended from the Science and Technology Innovation Board, also known as the STAR Market. The STAR Market is China’s version of the NASDAQ.

The Shanghai Stock Exchange cited “major issues such as changes to the financial technology regulatory environment … These issues may result in [Ant Group] to fail to meet the issuance and listing conditions or information disclosure requirements.”

In a statement to CNBC, an Ant Group spokesperson apologized for the suspension of its IPO and promised to work through the regulatory concerns.

An Alibaba spokesperson said the company will support Ant Group throughout the process, despite falling roughly 6% over Ant Group’s IPO suspension.

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