Credit Suisse, based in Zurich, often advises ant group on various transactions and made an equity investment in ant financial during its financing period in 2018, when the latter was valued at $150 billion. If ant groups IPO is welcomed by investors, Credit Suisse will get huge book income from this previously undisclosed investment.
Bernstein, the US investment bank, estimates ants valuation at $210bn, which represents a 40 per cent increase from the valuation level before Credit Suisses investment. Credit Suisse does not intend to sell its stake, people familiar with the matter said. Both the bank and ant declined to comment.
Credit Suisse has joined the ranks of investment banks such as Goldman Sachs and CICC, and is committed to investing in private enterprises, especially in the field of science and technology. With increased competition and reduced underwriter fees, these investments are expected to bring huge returns to investment banks. Credit Suisse also invested in South Korean cosmetics company L & pcosmetics and Indias herofincorp.
Ant group has previously said it is planning to seek a simultaneous listing in Hong Kong and Shanghai. Alibaba owns a third of ant group. People familiar with the matter said ant preferred Credit Suisse to act as a CO Global coordinator for its Hong Kong IPO, after the bank had been excluded from the initial list of sponsors of the deal.
According to people familiar with the matter, Credit Suisse has been working closely with companies under Mr. Ma for many years, handling at least 30 transactions within the Alibaba ecosystem. The bank also advised Alibaba on at least $14 billion in acquisitions, far more than other banks, according to compiled data.
During the financing period of ant group in 2018, Credit Suisses name did not appear in the list of investors to be disclosed. At the time, ant said it had raised about $14 billion from supporters such as GIC, Khazanah Nasional Berhad, Warburg Pincus, Canadas pension plan investment board, Silver Lake, Temasek and Carlyle. (small)
Source: Wang Fengzhi, editor in charge of Netease science and Technology Report_ NT2541