Ant was heading for a record-breaking $37 billion IPO

Ant was heading for a record-breaking $37 billion IPO

The Chinese fintech firm Ant Group has gone from flying under the radar to dominating headlines in recent months, and it's all thanks to its highly-anticipated IPO that was ready to go on Thursday.To get more latest ant group news, you can visit shine news official website.

But Ant Group saw those record-setting dreams dashed just days before it was set to begin trading when China introduced new lending rules that threw a wrench in the company's listing, and financial authorities suspended the offering.

The firm was expected to raise $37 billion, and its valuation was reportedly nearing more than $300 billion, a figure much greater than that of the world's most established banks, like Goldman Sachs, which has a market cap of $68 billion. The IPO attracted $3 trillion from retail investors. Ant would have taken the title of most valuable IPO from Saudi Aramco, reflecting the ongoing shift from oil to data as the world's most valuable resource, as The Economist notes. And the company and its IPO were poised to serve as a "stamp of approval" for the fintech market as a vessel for fast-moving disruptors in the traditional banking sector.

Experts told Business Insider that it will likely be another six months before Ant resumes its IPO, if it even does, and the firm has its work cut out: It'll need to review the nation's new lending rules and reapply to qualify for its dual listing. Ant Group pointed Business Insider to a statement saying that it is in close communication with Shanghai Stock Exchange officials regarding the next steps. When, or if, Ant eventually emerges on the stock exchange, it won't look exactly like the hailed fintech disruptor that it was touted as just last week, Eric Schiffer, CEO of private equity firm The Patriarch Organization, told Business Insider. Instead, the firm — which has largely enjoyed unfettered growth without regulatory restraint up until now — will likely be injected with more conservative banking methodology.

"This no longer looks to be a pure-play fintech but rather a fintech hybrid, with technology that enables communication and transactions overseen by traditional banking rules," Schiffer said. "The pure-play fintech is out the window — that's dead and buried."Ant's IPO was scheduled for November 5, and its interruption came about a week after founder Jack Ma made a series of brash comments condemning current banking regulations.

The billionaire publicly snubbed China's financial regulatory system at a Shanghai conference on October 24, declaring the rules to be ill-suited for fostering healthy innovation. He also slammed the regulators that enforce a set of international banking rules as "an old man's club."A week later, regulators suddenly introduced new regulations on online lending, which directly impacted Ant's lucrative lending and credit business. That online aspect of the firm's business accounts for nearly 40% of its revenue, per regulatory filings, and allows millions of Chinese residents to easily access loans via credit platforms. Ant may be forced to spin in out due to the regulations, as The Information reported.

"Regulators don't want to have this giant unregulated fintech machine which intermediates multi-trillions of loans that are not secured without a very rigorous capital and banking methodology that's conservative in nature," Schiffer said. "And the reason for that is the whole thing could go Kaboom."

Officials said there were "major issues" with Ant's listing under the new rules, and the Shanghai exchange suspended Ant's IPO on November 3. The company willingly pulled its listing in Hong Kong on the same day.