" Credit Suisse said that it is expected that Ant Group's market value will reach US$380 to US$461 billion after listing."
This article is an IPO original
Author | Stone Jin
After being approved by the China Securities Regulatory Commission and passed the Hong Kong Stock Exchange hearing, Ant Group's "A+H" listing is just around the corner. According to "IPO Early Know" learned, Ant Group plans to establish bookkeeping for Hong Kong IPO on October 27 and complete pricing on the 30th.
Today (October 23), Ant Group will officially start inquiry on Science and Technology Innovation Board, and complete A shares pricing on the 26th, and the subscription time will be October 29th.
As the listing date approaches, Ant Group's underwriter lineup has also surfaced.
According to the A-share prospectus, CICC and CITIC Construction Investment serve as sponsors, and together with CITIC Securities , Huatai United, Shenwan Hongyuan and BC Securities, they are co-lead underwriters of Ant Group's Science and Technology Innovation Board IPO; the prospectus of the Hong Kong Stock Exchange shows that the joint sponsors of of Hong Kong IPO include Citi , JPMorgan Chase , Morgan Stanley and CICC.
According to "IPO Early Know", Credit Suisse and CCB International will serve as the global coordinator and book manager of Ant Group's Hong Kong IPO; while ABC International, Barclays, BNP Paribas , CCB International , CCB International, CBN International, DBS Bank and Ruisui Bank will all serve as book managers.
In addition, Goldman Sachs and Deutsche Bank are the leading managers to participate in Ant Group's Hong Kong IPO.
It is worth mentioning that a report by Credit Suisse pointed out that the market value of Ant Group after its listing is expected to be US$380 billion to US$461 billion; and the theoretical basis of this figure is that Ant Group's net profit in 2020 will increase by as much as 141% year-on-year to RMB 43.3 billion; in 2019, Ant Group's net profit was RMB 18.07 billion, and in the first half of 2020, the net profit was RMB 21.92 billion, which has exceeded the full year of 2019.
In fact, Ant Group's IPO valuation has been raised from the initial US$225 billion to US$250 billion, and then further increased to US$280 billion.
Credit Suisse expects Ant Group's revenue compound growth rate from 2020 to 2022 to 32%, the target price-to-earnings ratio will be between 38x and 45x, and PEG (P/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/E/
Currently, the average PEG of the five companies, Tencent, Alibaba , JD.com, Meituan and Pinduoduo, is 1.2x.
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