The most valuable unicorn in the world is planning its IPO
With a market value between 150 and 200 billion US dollars, the Chinese financial technology company Ant-Financial is the most valuable unicorn in the world. Now the subsidiary of the Alibaba Group wants to take the leap to the stock market.
In the financial world, unicorns are defined as a start-up that is not yet listed on the stock exchange but already has a market capitalization of over one billion US dollars.
Most valuable unicorns in the world
To be part one of the most valuable unicorns in the world, a start-up needs a market capitalization of at least 31 billion US dollars. This is exactly the value of SpaceX, the space company founded by Tesla boss Elon Musk, currently ranks 10th among the most valuable unicorns. As well in the top ten are the real estate platform Airbnb, also with a capitalization of 31 billion US dollars, and the e-cigarette manufacturer Juul Labs with a market value of 50 billion US dollars. The most valuable unicorn in the world at the moment is the Chinese financial technology company Ant Financial. The subsidiary of the Alibaba Group is valued at 150 to 200 billion US dollars.
About Ant Financial
Despite its high valuation, the Chinese company Ant Financial is little known in western countries. Ant Financial is a financial technology company that offers numerous financial services. Among the best-known services Ant Financial operates are Alipay, the world’s largest platform for mobile and online payments, and Yu’e Bao, one of the world’s largest money market funds. Credit Suisse estimated in 2016 that around 58 percent of online payments in China are be processed via Alipay, making the service the unbeaten market leader. Ant Financial’s repertoire also includes the controversial credit rating system Sesame Credit, which takes social behavior into account when granting credit (Social Credit System).
Ant Financial goes public
According to various reports, the Chinese financial services provider now wants to take the leap to the stock market, but it is still unclear what exactly this will look like. The initial public offering is expected to take place as early as autumn this year (September/October). The Chinese financial news agency Caixin also announced that Ant Financial is aiming for a record sum of 30 billion US dollars in the IPO. If it succeeds, it would be the largest IPO in history. Whether the plans of the Alibaba Group subsidiary will work out is still uncertain, however, because according to reports from the US news agency Reuters, the Chinese central bank is considering opening an antitrust investigation against Ant Financial for exploiting market power. In any case, one should keep an eye on how the (still) most valuable unicorn in the world will develop.
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