Heard on Economist Radio
The IPO might happen by years end.
Apparently new regulations in China will require online lending companies that co-produce loans to pony up 30% . ANT's model was based on providing 2% of these loans. This means that its original plan had 50x leverage and with this change it would only have 3x leverage.
Ant was presenting itself as a tech company which typically has a valuation of 40x forward earnings. But it will now be considered a bank /fintech which have valuations in China of 10x forward earnings.
ANT's IPO value will probably be somewhere in between, so not $300B but maybe just $150B.
https://open.spotify.com/episode/6hHCRAIZ8ZKqIyl5NVA9P1?si=Mnq8O5P7TjqVKsvNsOv7mg
Submitted November 11, 2020 at 08:21PM by NPRjunkieDC https://ift.tt/2IuQ9SC
