To Ant Group Co. ’s set of staggering statistics—a billion users, more than $17 trillion in yearly payment volumes—add one more: trillions of dollars in stock orders from small investors.
Late Thursday, the Chinese financial-technology giant said individual investors in mainland China had placed the equivalent of more than $2.8 trillion of orders for their slice of Ant’s record-breaking initial public offering, in which it is listing simultaneously in Shanghai and Hong Kong.
That sum exceeds the value of all the stocks listed on the exchanges of Germany or Canada. Mom-and-pop investors in Hong Kong have also clamored to buy into this IPO, betting that Ant will soar in value after it goes public next Thursday.
More than 5 million individuals placed orders for shares in Shanghai, a record for IPO subscriptions on the STAR Market, a Nasdaq-style technology-focused board that launched last year. Orders exceeded the shares reserved for small investors more than 870 times.
The figure is more impressive given the high hurdles for participating in Star IPOs: Individuals must have at least two years of stock-trading experience and brokerage-account assets totaling at least 500,000 yuan, the equivalent of $74,300. The IPOs are routinely heavily oversubscribed and stocks often soar after listing.