Alibaba Shares Plummet After Revived IPO Talks Get Squashed

Shares of Alibaba were heading lower on Thursday after Jack Ma’s Ant Group and regulator squash talks of a revived IPO.

The stock dropped 8% after its financial affiliate Ant Group said there were currently no plans to revive a public listing. Additionally, a key regulator said it had not conducted an evaluation on a potential listing.

The China Securities Regulatory Commission said it had not conducted “evaluation and research work” regarding the potential Ant Group IPO.

Controlled by billionaire Alibaba founder Jack Ma, Ant Group had its IPO pulled in November 2020 after regulators flagged concerns with the company. The dual listing in Hong Kong and Shanghai would have been the biggest IPO in history.

Ant Group has been ordered by regulators to rectify its business to comply with Chinese rules, including setting up a financial holding company.

Bloomberg reported Chinese financial regulators have commenced early stage discussions about reviving the IPO, citing people familiar with the matter. Reuters reported that Chinese leadership had given the okay for a listing. But Ant Group said there are no plans for an IPO.

“Under the guidance of regulators, we are focused on steadily moving forward with our rectification work and do not have any plan to initiate an IPO,” a spokesperson for the company told CNBC.

The China Securities Regulatory Commission (CSRC) said in a statement on Thursday it had not conducted “evaluation and research work” regarding a potential Ant Group IPO. The CSRC added that it supports eligible platform companies going public at home and abroad.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.