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Ant Group to Close Institutional Book of $17.2 Billion Hong Kong IPO Early: sources

Ant Group to Close Institutional Book of $17.2 Billion Hong Kong IPO Early: sources

Ant Group <688688.SS> (HK:6688) will close its Hong Kong institutional book building a day sooner than arranged as it intends to bring about $17.2 billion up in the city, as indicated by three sources with direct information on the issue. 



Ant Group <688688.SS> (HK:6688) will close its Hong Kong institutional book building a day sooner than arranged as it intends to bring about $17.2 billion up in the city, as indicated by three sources with direct information on the issue. 


The book was due to close on Thursday, yet that cutoff time will be quickened to Wednesday 5.00 p.m. in every locale. 


The order book was oversubscribed one hour after the launch on Monday, two separate sources with direct information on the issue said. 


Ant Group declined to remark on the arranged early closure of the Hong Kong institutional book, which is essential for its world record initial public offering (IPO).


It is hoping to raise up to $34.4 billion out of a dual listing in Hong Kong and Shanghai, with the offer split between the two exchanges, giving it a valuation of about $312 billion. 


The sources asked to remain anonymous as they were not allowed to comment to the media. 


Ant, which operates China's greatest mobile payments platform Alipay, is a subsidiary of e-commerce giant Alibaba Group Holding (N:BABA) (HK:9988).


It will offer 41.76 million shares, or 2.5% of its total shares in Hong Kong, to retail investors whose request to purchase the stock is expected to be strong.


Hong Kong works a 'clawback' framework where substantial oversubscription from small investors can result in them getting a more prominent offer. 


The prospectus shows the total amount will be expanded to 167.1 million shares, or 10% of the arrangement if the underlying retail allocation is more than 20 times oversubscribed. 


The city's brokers are preparing billions of dollars of margin financing to lend to clients to purchase the stock.


Retail investors need to settle and pay for the shares they have bid for by Friday, as per Ant's prospectus.



Economic Calendar Highlights


  • Germany Unemployment Change 

German Unemployment Change measures the change in the number of unemployed people during the previous month.


A higher than expected reading should be taken as negative/bearish for the EUR, while a lower than expected reading should be taken as positive/bullish for the EUR.


  • U.S. Gross Domestic Product (GDP) QoQ 

Gross Domestic Product (GDP) measures the annual change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health.

Usual Effect: Actual > Forecast = Good for currency

Frequency: Released monthly. There are 3 versions of GDP released a month apart - Advance, second release, and Final. Both the advance and the second release are tagged as preliminary in the economic calendar.


  • U.S. Initial Jobless Claims

Initial Jobless Claims measure the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies weekly.

 

A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.


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The deposit facility is the rate that banks may use to make overnight deposits with the Eurosystem.

 

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The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

 

A higher than expected rate is positive/bullish for the EUR, while a lower than expected rate is negative/bearish for the EUR.

 

  • European Central Bank Press Conference

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  • U.S. Pending Home Sales MoM

The National Association of Realtors (NAR) Pending Home Sales Report measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.

 

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.