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Ant Group's investors need big jump in IPO to offset borrowing

Due to high leverage, some investors may see profit only if stock rises 24%

HONG KONG -- Hundreds of thousands of retail investors hoping to buy shares in Ant Group will be counting on gains of at least 11% in the initial days of trading to cover the upfront costs of trying to be part of the world's largest initial public offering.

Ant's IPO, which could raise as much as $39.6 billion, has stoked a frenzy, with mom-and-pop investors alone putting in bids worth $3 trillion in Hong Kong and Shanghai ahead of its trading debut Thursday. While most investors will likely hold onto their shares, many retail investors borrowed heavily to invest in Ant in anticipation of an immediate listing windfall.

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