US asset manager Fidelity Investments has cut Ant Group’s valuation in half in its latest filings assessing the Chinese financial tech giant’s shares held by its funds, the Wall Street Journal reported on Monday.
According to the regulatory documents cited by the WSJ, at the end of February, a new valuation of the company founded by Jack Ma, which was subject to restrictions by the Beijing authorities, which stopped the placement of shares on the stock market, was $ 144 billion.
By comparison, the estimated cost at the end of August was $ 295 billion. Fidelity was among a small group of global investors who bought Ant three years ago.
Ant’s initial public offering was effectively canceled last November and Chinese regulators later ordered the enterprise to be converted into a financial holding company, dampening Ant’s attractiveness in the eyes of investors. read more
In May 2018, Fidelity invested about $ 238 million in Ant on behalf of various funds, the WSJ reports, citing Ant’s IPO prospectus, in a round that valued the company at approximately $ 150 billion, higher than Ant’s current valuation by US asset managers.
Fidelity and Ant Group did not immediately respond to Reuters’ requests for comment.
In March, Reuters reported that some global investors in Ant Group valued the Chinese company at more than $ 200 billion based on its 2020 performance, well below the $ 315 billion it announced in the world’s largest IPO. read more
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