Jack Ma is making history again with the Ant IPO, and getting even more wealthy while doing it

Ant Group sets new IPO record with $34 billion share sale

Posted: Oct 27, 2020 3:51 PM
Updated: Oct 27, 2020 3:51 PM

Billionaire tech tycoon Jack Ma is raising more than $34 billion in yet another record breaking IPO, further cementing his place in history as one of the world's great tech entrepreneurs.

Financial tech company Ant Group's share sale in Hong Kong and Shanghai — the biggest in history — will catapult Ma to within striking distance of the globe's richest elites. Bloomberg estimates that the 56-year-old's fortune will soon hit $71.1 billion, positioning him as the 11th wealthiest person in the world.

Through e-commerce giant Alibaba and now Ant Group, Ma has had a transformational effect on China's internet industry and on hundreds of millions of Chinese consumers. It's hard to go anywhere in China and not see the impact of Alibaba and Ant, said Duncan Clark, author of "Alibaba: The House That Jack Ma Built" and chairman of investment advisory firm BDA China.

If you live in China, "you're going to be touching the companies that Jack founded pretty much every day, and almost every hour in some cases," Clark said.

Jack Ma and China's rise

It's more than just using an app or an online shopping website that Ma helped build. A massive number of Chinese "associate these products with the last 10 years of rising prosperity," Clark said. "There's an emotional element to it."

Ma created Alipay — the payments business that forms the backbone of Ant — as a side project to plug a hole in China's nascent online shopping industry. Before Alipay was created, inefficient state-run banks with reputations for poor customer service were the only options available for most businesses and consumers. A convenience store owner who needed a few hundred dollars to get through the month would likely not have bothered going to the bank to get a loan because it would have been too troublesome, said Zennon Kapron, founder of financial technology consulting and research firm Kapronasia.

Ant changed all that.

"[Ma's] vision from the very beginning was to enable people to essentially do better and give them the tools to do that," said Kapron.

Through Ant, people can apply for and get decisions on small loans quickly. They can also can pay for things with the tap of a button and they can invest in big money market funds with as little as 1 yuan (15 cents).

Ant's market debut will make Ma a lot richer

Ma's accomplishments are well known in China.

Edith Yeung, China internet expert and general partner with Race Capital, rattled off a list of hurdles that should have stood in the way of his success: He is short, grew up during China's turbulent Cultural Revolution, had no family connections, didn't have an Ivy League degree and founded Alibaba in 1999, two years before the dotcom bubble burst.

Ma represents "the ultimate Chinese dream," Yeung said. That "somebody like him, with all the wrong formula [for success] can get to this point, it's just amazing and astonishing," she said.

"Chinese people look up to him because he looks just like us and he [achieved] mega success, Silicon Valley-style," she added.

Ma is already the wealthiest man in China, according to the Bloomberg Billionaires Index and the most recent Hurun China Rich List published last week. Ant's IPO will make him even richer.

Ma — who has "ultimate control" over Ant — will hold an 8.8% stake in the company worth more than $27 billion post-IPO, according to regulatory filings.

His fortune will soon exceed that of Oracle's Larry Ellison, L'Oreal heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart, according to Bloomberg.

Ant's market debut will also mark the second time Ma has spearheaded a world record shattering IPO.

He was on the floor of the New York Stock Exchange when Alibaba raised an eye popping $25 billion in 2014. It was the largest ever IPO at the time, and was surpassed just last year by Saudi Aramco's $29.4 billion float. Ant announced on Monday that it is raising more than $34 billion through dual listings in Hong Kong and Shanghai. The shares are expected to start trading in Hong Kong on November 5.

Speaking at a business conference in Shanghai last week, Ma touted the fact that the pricing for Ant's IPO was "determined outside of New York City," underscoring China's growing clout in finance and tech.

"We didn't dare to think about it five years ago, or even three years ago," Ma said, calling it "a miracle" that such a huge IPO can now take place in Hong Kong and Shanghai.

Alibaba shunned Hong Kong for its market debut in 2014 because the exchange refused to allow it to list with dual-class shares, a corporate structure that gives management more power. Hong Kong changed its rules in 2018, enabling Alibaba to list secondary shares in the city last year. When Shanghai's new tech board launched last July, it fell in line with the New York Stock Exchange, Nasdaq and Hong Kong by allowing listings of companies with dual-class shares or weighted voting rights.

Ant's IPO also comes as a growing number of Chinese companies have been seeking refuge on national exchanges as tensions between Washington and Beijing ramp up.

"It's kind of ironic validation to do [part of the Ant] listing in Hong Kong. It's perfect timing to stick it in the eye of the United States as well," said Clark.

Beyond regulatory evolutions, Ma has also overseen dramatic changes in China's internet industry. The tech tycoon learned about the internet during a trip to the United States in 1995. Invigorated by the technology, Ma returned to China, where the internet was still virtually unknown.

"The day we got connected to the web, I invited friends and TV people over to my house," he told The New York Times in an interview in 2005. "We waited three and a half hours and got half a page. We drank, watched TV and played cards, waiting. But I was so proud. I proved the internet existed."

Today, Alibaba's platform regularly hosts frenetic live-stream shopping events where millions of consumers watching on smartphones can buy everything from make-up to mangoes. Ma himself appeared alongside a celebrity influencer to take part in a live-stream challenge to sell lipstick in 2018.

The Henry Ford of China

Measuring Ma's impact against his contemporaries, "he ranks right up there ... next to Steve Jobs, and Bill Gates and Jeff Bezos," Kapron said.

Clark, the author, goes back further in time, likening Ma to American industrialist and business magnate Henry Ford.

"In terms of Henry Ford's standardized production, you can think about that in terms of the logistics of the Alibaba empire, and retail, and now with Ant's [impact on China's] finance. Those are three big sectors right there that he's linked in new ways and revolutionized," he said.

Ma stepped down from his role as chairman of Alibaba last year, and has over the years increasingly turned his focus to philanthropic efforts in China and Africa.

He has pledged to donate 611 million of his Ant shares to charitable donations.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 554536

Reported Deaths: 7083
CountyCasesDeaths
Hennepin1155051679
Ramsey47786853
Dakota42410422
Anoka38477415
Washington24913273
Stearns20994218
St. Louis16774297
Scott15946117
Wright14764127
Olmsted1273297
Sherburne1060080
Carver980145
Clay781289
Rice7632101
Blue Earth695840
Kandiyohi627380
Crow Wing615086
Chisago548250
Otter Tail542673
Benton530597
Mower450532
Goodhue442471
Douglas441870
Winona438149
Nobles400248
Morrison394659
McLeod394355
Isanti375159
Beltrami372257
Itasca370752
Polk365367
Steele361914
Becker353948
Lyon347848
Carlton329352
Freeborn326829
Pine311821
Nicollet306542
Brown294439
Mille Lacs281250
Le Sueur269722
Todd268730
Cass249626
Meeker235937
Waseca231221
Martin212529
Wabasha19953
Roseau197318
Renville172043
Hubbard171841
Dodge17123
Redwood166435
Houston162614
Cottonwood156821
Fillmore15169
Pennington150619
Chippewa145836
Wadena144021
Faribault143419
Sibley135710
Kanabec130621
Aitkin128636
Watonwan12549
Rock122719
Jackson117310
Yellow Medicine110419
Pipestone109725
Murray10229
Pope10226
Swift99518
Marshall85617
Stevens82010
Lake78419
Clearwater77414
Koochiching76913
Wilkin76812
Lac qui Parle73522
Big Stone5644
Lincoln5592
Grant5478
Norman5229
Mahnomen5048
Unassigned49578
Kittson46622
Red Lake3877
Traverse3595
Lake of the Woods3053
Cook1450

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 357796

Reported Deaths: 5821
CountyCasesDeaths
Polk55970604
Linn20297330
Scott19082234
Black Hawk15550306
Woodbury14897221
Johnson1404281
Dubuque13153202
Dallas1089196
Pottawattamie10747162
Story1031147
Warren555186
Clinton537390
Cerro Gordo521986
Webster508291
Sioux506073
Marshall477174
Muscatine459896
Des Moines441465
Wapello4253120
Buena Vista421740
Jasper407670
Plymouth397079
Lee368155
Marion354575
Jones293055
Henry286137
Bremer279260
Carroll279151
Crawford262040
Boone258533
Benton250355
Washington249550
Dickinson242043
Mahaska224850
Jackson217942
Kossuth212663
Clay211025
Tama206671
Delaware202839
Winneshiek194433
Page190321
Buchanan188831
Cedar183823
Fayette182941
Wright180435
Hardin179942
Hamilton178049
Harrison176373
Clayton167055
Butler162534
Mills158620
Cherokee157138
Floyd155342
Lyon154741
Madison153919
Poweshiek152733
Allamakee149051
Iowa145524
Hancock143534
Winnebago136031
Grundy135232
Cass134354
Calhoun133211
Jefferson130635
Emmet128840
Shelby128337
Sac127219
Louisa126849
Appanoose126747
Mitchell125241
Union124032
Chickasaw122615
Humboldt118326
Guthrie117929
Franklin112721
Palo Alto110922
Howard102822
Montgomery100637
Unassigned10030
Clarke98223
Keokuk94530
Monroe94128
Ida89633
Adair84532
Pocahontas83621
Monona81230
Davis79924
Greene76710
Osceola75516
Lucas74923
Worth7078
Taylor65212
Fremont6139
Decatur5899
Van Buren55518
Ringgold53623
Wayne52123
Audubon4949
Adams3284
Rochester/St. Mary'S
Mostly Cloudy
61° wxIcon
Hi: 64° Lo: 32°
Feels Like: 61°
Mason City
Mostly Cloudy
62° wxIcon
Hi: 64° Lo: 34°
Feels Like: 62°
Albert Lea
Cloudy
61° wxIcon
Hi: 63° Lo: 34°
Feels Like: 61°
Austin
Partly Cloudy
61° wxIcon
Hi: 63° Lo: 32°
Feels Like: 61°
Charles City
Cloudy
61° wxIcon
Hi: 63° Lo: 36°
Feels Like: 61°
Tracking an arctic front, cooling us down for the workweek
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Sara's Saturday Night Forecast

Image

April Tool's Day

Image

Byron baseball starts season strong

Image

Hayfield BB PKG

Image

Minnesota DNR offering virtual firearm safety classes for youth

Image

Aaron's Saturday Forecast (4/17/21)

Image

North Broadway Avenue project begins Monday

Image

Aaron's Evening Forecast (4/16/21)

Image

Mom hosting Prom

Image

Vaccines for manufacturing

Community Events