Alibaba Group Holding Limited (NYSE:BABA) stock is trading slightly up amid reports of the unlikelihood of the Jack Ma-backed Ant Group’s initial public offering in the short term.
Ant Group recently won approval to buy back up to 7.6% of its equity interest from investors.
Also Read: Ant Group Looks To Separate Non- core Operations
The buyback valued Alibaba’s fintech affiliate at $78.54 billion, well below the $315 billion touted in the suspended IPO, Reuters reports.
In July, China ended its regulatory overhaul on the Alibaba fintech affiliate with a record penalty of 7.12 billion yuan ($984 million).
Ant Group paid the fine for violating consumer protection and corporate governance laws paving the way to secure a financial holding company license, seek growth, and revive its listing plans.
The People’s Bank of China (PBOC) has been driving the revamp at Ant after China scrapped its $37 billion IPO in 2020.
Another report indicated that Jack Ma’s holding companies focused on art and antiques invested RMB 11 million ($1.5 million) in a newly established marine technology firm.
Jack Ma’s holding company will own 10% of the new company, founded on July 20 with a registered capital of RMB 110 million ($15 million).
The company’s business scope comprises aquaculture, freezing, processing of aquatic products, and research and development into offshore wind power.
Hu Xiaoming, a former CEO of Ant Group, holds 5.5% of shares in the new company, while Deng Zhonghua, who served for ten years in Alibaba’s big data operations, owns a 2.5% stake.
Price Action: BABA shares traded higher by 0.30% at $100.85 premarket on the last check Monday.
