Jack Ma’s Ant Group, the online-payments affiliate of e-commerce giant Alibaba Group (BABA) – Get Report, now wants to raise at least $35 billion in its initial public offering in Hong Kong and Shanghai, a media report says.
Last month, reports indicated Ant Group hoped to raise up to $30 billion.
The new number resulted from a rise in Ant Group’s valuation to $250 billion from $225 billion, knowledgeable sources told Bloomberg.
Either the $30 billion or the $35 billion would set a record for an IPO, topping Saudi Aramco’s $29 billion offering in 2019 on the Tadawul Stock Exchange. Shanghai regulators approved Ant’s IPO on Friday.
Ant plans to use the proceeds from the sale to expand cross-border payments and enhance its research and development capabilities, it said in its IPO filing.
The company has evolved into an online mall for everything from loans and travel services to food delivery and robo-investing, in an effort to lure customers from Tencent Holdings.
Ant posted more than $2 billion in profit in the fourth quarter, based on calculations made from Alibaba’s filing.
Apart from mobile-payments service Alipay, Ant Group also operates one of the world’s largest money market funds and runs Zhima Credit, commonly known as Sesame Credit, a credit-rating system.
According to the filing, Alipay’s total transaction volume reached 118 trillion yuan ($17 trillion) in the 12 months ended in June. The payment and transaction service had more than 1 billion users and 711 million monthly active users, according to the filing.