What Happens When IPOs are Cancelled

Ant Group and WeWork are recent high-profile examples of floats that didn't make it over the line. Should investors be worried if a company changes its mind?

James Gard 24 November, 2020 | 9:48AM
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Global investors were braced for the blockbuster flotation of Ant Group which at a $34 billion valuation would have made it the biggest IPO on record, eclipsing Saudi Aramco in 2019. But at the 11th hour, the float was pulled following intervention from the Chinese government.

A record-breaking float in the middle of the global pandemic might seem at odds with economic reality, but it did underline how much quicker Asia-Pacific has recovered from the crisis. The decision by Ant Group to float in China rather than New York was seen as a litmus test of increasing confidence in local capital markets. China has been one of the best performing stock markets this year so it’s not surprising to see some investor exuberance in the region.

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James Gard  is content editor for Morningstar.co.uk

 

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