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Summary
- Ant Group is working towards a short-term liquidity solution for employees.
- The top management has confirmed its intention of getting the company listed after resolving issues with authorities.
The listing of Chinese fintech company Ant Group on Hong Kong and Shanghai stock exchanges was the most awaited IPO of the year 2020 that did not materialise. The planned listing was abruptly halted by Chinese authorities, days before its schedule, citing antitrust issues with the company.
Image source: © Stavklem | Megapixl.com
Ant Executive Chairman Eric Jing has now reportedly said that the Group is working to identify a short-term liquidity solution for workers. It is most likely to come into effect in April 2021.
Assuring the employees of an IPO in store, the Chairman said the company does plan to go public. However, it would first work to comply with Chinese authorities’ requirements. Mr Jing made the statements while responding to an employee query regarding the company's future and how it is going to retain talent.
Employees' morale at the fintech company has been low, and they are experiencing discontent ever since the authorities were forced to withdraw what would have been a blockbuster IPO.
Several employees will hold the company shares as compensation that they can cash out or monetise if the management decides to buy back these stocks or if the company goes public or gets acquired.
In January 2021, Yi Gang, the Governor of People's Bank of China (PBOC), also hinted towards the possibility of Ant’s IPO in the future. Once the company satisfies the authorities, it can go ahead with its IPO. The concerned agencies are probing the critical issues related to consumer privacy, Mr Yi Gang had said.
Also read: Ant Group's Race to world's biggest IPO Abruptly Derailed, Regulator Raises Red Flag
Why was the IPO halted in November 2020?
Reportedly, the company's revolutionary approach didn't work well with the Chinese authorities. Ant's app Alipay is China's popular payment platform. As per reports, Jack Ma, the founder, was not ready to share consumer data with the Chinese central bank. Consequently, officials cited antitrust issues and halted the IPO. Also, Mr Ma had criticised traditional banks, which seemed to have ruffled the features of authorities.
Since Jack Ma's issues with the Chinese government began, a lot has happened. He disappeared for three months before making an appearance in Jan this year; also, he and his family lost their position of being the wealthiest in the country and they are now on the fourth position as far as wealth is concerned.
Of late, Chinese regulators have been increasingly stringent and concerned about the technology companies' power, especially those operating in the fintech sector.
Must read: Can Ant Group revive its history-making IPO?