Ant Group reportedly mulls restructuring as it prepares for HK IPO reboot

Ant Group is reportedly mulling a restructuring that will remove some non-core business of its China financial-related operations as it paves way to refile an initial public offering (IPO) in Hong Kong.

According to Bloomberg, sources said that Ant Group is considering detaching its blockchain, database management services and international businesses from a main entity that would be used to apply for a financial holding license in China. Ant Group has proposed the plan to some of the shareholders, said the report. 

Upon completion of the restructuring and receiving of the license, the company can prepare for a public listing in Hong Kong, instead of reviving the dual Shanghai-Hong Kong listing plan which was suspended by Chinese regulators in November 2020.

MARKETING-INTERACTIVE has reached out to Ant Group for a statement. 

Don't miss: Ant Group reportedly mulls selling stake in its HK virtual bank unit

In fact, Ant Group has been restructuring operations across the board to appease regulatory demands after China halted its initial public offering (IPO) in 2020. Back in December last year, it won regulatory approval to expand the capital base at its consumer credit unit.

On the other hand, Ant Group was reportedly mulling to sell a stake in its virtual banking unit Ant Bank (Hong Kong) after it overhauls operations back in May. According to Bloomberg, Ant Bank (Hong Kong) had been in talks with potential investors to bolster operations, said people familiar with the matter. Meanwhile, the plan is was its early stages and subject to change.

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