Ant has set the price tag for its dual listing in Shanghai and New York, maintaining its original target to break the fundraising record despite the hurdles ahead.

The Chinese fintech giant priced the Shanghai and Hong Kong tranches at $10.27 and $10.32 per share, receptively, which could lead to over $34 billion raised.

This would break the previous record set by Saudi Aramco's IPO last year at $29 billion and set Ant’s valuation at about $312 billion – 31.4 and 24.2 times the firm's 2021 and 2022 earnings forecast, according to a «Reuters» report citing unnamed sources.

29 strategic investors will have access to 80 percent of the Shanghai-based offering including one wholly-owned unit of Alibaba which agreed to purchase 44 percent. Major strategic investors outside of China include the likes of Singapore’s Temasek and GIC and Abu Dhabi Investment Authority.

Multiple Fronts Opened

Despite the continued optimism, Ant’s path to the dual listing has been marred by a series of negative headlines.

They include accusations of discounted pre-IPO share sales; a domestic regulatory probe over potential conflict of interest with payment arm Alipay; and threats by U.S. officials to consider restrictions to delay the IPO. 

Trading is expected to commence two days after the U.S. election on November 5.

Basel Accords: «Old People’s Club»

In his latest remarks, Ant’s billionaire founder Jack Ma took aim at the international banking supervision framework by calling it outdated for future needs over its strong emphasis on risk management and irrelevant for China’s development.

«The Basel Accords are like an old people’s club […]  we can’t use yesterday’s methods to regulate the future,» Ma said at a conference in Shanghai over the weekend.

«Many of the world’s problems [stemmed from] only talking about risk control, not talking about development, not thinking about young people’s or developing countries’ opportunities».

Banks: «Pawnshops»

Ma also called for less reliance on big banks and more diversification of capital channels through an ecosystem of «lakes, ponds, streams and brooks».

In line with de-emphasization on risk, Ma also called on the financial sector to focus more on credit ratings based on data rather than the collateral, like a «pawnshop».