Why Ant Group's IPO may stay on ice for a while

Tough new rules on microlending may force changes to company's business

The shockwaves of the IPO suspension will spread far beyond Ant Group and affect other fintech companies weighing initial public offerings, an investment banker said. © AP

LIU CAIPING, ZHANG YUZHE, YUE YUE, WEI YIYANG and HAN WEI, Caixin

November 10, 2020 22:17 JST

Now that Ant Group's would-be record initial public offering is on ice, what's next for the high-flying fintech behemoth and the investors who hoped to make a quick killing?

Both may be in for a long wait as Ant Group adapts its business to tough new regulations on microlending, one of the company's biggest business drivers, according to analysts, investment bankers and market experts. And whenever it comes back to the market, Ant is likely to face a significant haircut off its valuation of 2 trillion yuan ($302.5 billion).