The Chinese e-commerce giant fell sharply on Friday after a report that billionaire Jack Ma plans to relinquish control of Ant Group.
(Stock ticker: BABA) He owns about a third of Ant, the fintech hub. The Wall Street Journal reported Thursday that The ant was looking to distance itself from Ali BabaIt was founded after a long period of regulatory pressure.
The magazine noted that Ma’s diminishing ownership in Ant could lead to a possible revival of the company’s initial public offering for a year or more. Ma currently controls 50.52% of Ant stock. The Shanghai Stock Exchange suspended Ant’s initial public offering of more than $34 billion in November 2020.
Meanwhile, analysts expect Alibaba to report a drop in quarterly revenue when it announces August 4. This will be the company’s first negative quarterly revenue growth, according to Bloomberg. Analysts surveyed by FactSet expect revenue to come in at $30.2 billion for the quarter ending in June, down from $31.8 billion a year earlier.
Alibaba shares have fallen since Tuesday after the company said it would apply for Hong Kong’s primary list. The listing is expected to be completed before the end of 2022. Alibaba will become a major binary company listed in Hong Kong and New York, where the company’s US depository shares are traded.
ADRs closed on Tuesday at $101.44. In Friday’s trading, they fell 7% to $93.50. Hong Kong-listed Alibaba shares closed down 6.1 percent on Friday.
Write to Joe Woelfel at [email protected]