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Alibaba-affiliated Ant Group's World Biggest IPO In Shanghai And Hong Kong Suspended

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Shares of Alibaba Group Holding Limited (BABA) dropped more than 5 percent in regular U.S. trading on Tuesday, after Ant Group's world biggest initial public offering in Shanghai and Hong Kong was suspended.

In late-October, reports said Alibaba-affiliated Ant Group would raise about $34.5 billion in its dual public offering, making it the biggest stock market listing in history. It was expected to begin trading in Shanghai and Hong Kong on November 5.

The previous record for a listing was held by Saudi Aramco, which raised $29.4 billion last December.

Jack Ma's Alibaba holds about 33 percent ownership in Ant Group.

The Shanghai Stock Exchange has suspended initial public offering of Ant Group, as the company may not meet listing qualifications or disclosure requirements due to material matters relating to the regulatory interview of its ultimate controller, executive chairman and chief executive officer by the relevant regulators and the recent changes in the Fintech regulatory environment, Ant Group said in the U.S. regulatory filing quoted the Shanghai Stock Exchange saying.

Consequently, Ant Group's concurrent proposed H share listing on the Main Board of The Stock Exchange of Hong Kong Limited was also suspended.

Ant Group reportedly priced its dual listing on the Hong Kong Stock Exchange and Shanghai at HK$80 per share and 68.8 yuan per share respectively, the reports had said citing regulatory filings.

The Chinese financial technology company would raise about $17.2 billion in Shanghai and roughly the same amount in Hong Kong through its initial public offering.

BABA was trading at $293.00, down $17.84 or 5.74 percent.

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