Banks Working on Ant Group’s Hong Kong IPO Could Get $396 Million Windfall
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The banks working on the Hong Kong leg of Ant Group Co.’s record-breaking initial public offering are looking at a windfall of as much as $396 million, although in percentage terms it is less than the city’s average for big deals.
Ant is set to raise as much as $19.8 billion in Hong Kong if it fully exercises an over-allotment option. The fintech giant disclosed in a filing that it will pay an underwriting commission of as much as 1% of the total deal size, or $198 million. That’s below the average 1.45% paid by companies raising over $1 billion in the city, according to data compiled by Bloomberg.