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Ant's IPO pushes CICC to No 2 in global league tables for new listings

Published 11/02/2020, 06:31 AM
Updated 11/02/2020, 06:35 AM
© Reuters. FILE PHOTO: The company logo of China International Capital Corporation Ltd is displayed at a news conference on the company's annual results in Hong Kong
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By Scott Murdoch

HONG KONG (Reuters) - China International Capital Corporation (CICC) (HK:3908) <601995.SS> has broken into the world's top two investment banks for new listings for the first time since the global financial crisis due to its role leading in fintech giant Ant Group 's (HK:6688) (SS:688688) mega float, Dealogic figures show.

League tables published on Monday distributing credit for the Ant deal has pushed CICC into the top tier of investment banks working on IPOs and secondary listings around the world.

CICC, ranked fifth globally before Ant so far this year, is now second behind Credit Suisse (SIX:CSGN), according to the figures.

The market share figures came as CICC's stock started trading on the Shanghai Stock Exchange on Monday after the bank raised $2 billion in a secondary listing.

CICC is a sponsor on both the Shanghai and Hong Kong legs of the Ant IPO, set to be the world's largest, that has raised up to $37 billion which includes an already exercised greenshoe option for the mainland portion of the deal.

Goldman Sachs (N:GS) is now ranked third on the global listings league table, followed by Citigroup (N:C) and Morgan Stanley (N:MS), the data shows.

The Ant IPO has prompted a reshuffle of the bank rankings in Hong Kong.

CICC retained its top ranking but increased its market share to 11% from 9% while only two western banks remain in the top 10.

Citigroup and Morgan Stanley, two sponsors of Ant's Hong Kong legs, are ranked eighth and ninth, while the remaining top 10 spots are taken by Chinese institutions.

Ant Group will pay the 24 banks which underwrote the Hong Kong leg of the deal up to $198 million in fees, if the 15% greenshoe is exercised.

© Reuters. FILE PHOTO: The company logo of China International Capital Corporation Ltd is displayed at a news conference on the company's annual results in Hong Kong

The fees equate to 1% of the IPO's proceeds which is considered low compared with most deals in the Asian financial hub.

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