HONG KONG (Reuters) – China’s Ant Group 688688.SSwill pay bankers selling its shares in Hong Kong up to $198 million in underwriting fees, its filings showed on Monday, in line with a trend of large issuers sharing a small portion of their fundraising with advisers.
The financial technology giant on Monday set terms for its dual-listing in Hong Kong and Shanghai aimed at raising up to $34.4 billion in the world’s largest market debut.
It is looking to raise $17.24 billion in the Hong Kong tranche of the initial public offering (IPO), which would be the largest flotation in the Asian financial hub since insurance major AIA’s $20.5 billion offering in 2010.
The documents lodged with the Hong Kong exchange showed the 24-strong underwriting syndicate will earn 1% of Ant’s IPO proceeds.
In Hong Kong, it is standard practice for banks to be paid 2% to 2.5% of an IPO’s proceeds, according to Dealogic, which ranks the city as one of the lowest fee-paying financial centres in the world. The fee paid to the banks running the Shanghai leg of Ant’s listing was not immediately known.Read morehttp://Slim pickings: Ant to pay bankers up to $198 million in fees for Hong Kong IPO