According to Bloomberg, China has given the go-ahead for Ant Group to fund US $1.5 billion for the consumer division of Jack Ma’s fintech giant.
The permission enables Ant to increase its capital to 18.5 billion yuan (US $2.7 billion), according to a notification from the China Banking and Insurance Regulatory Commission division in Chongqing.
Ant provided US $761 million of that total. A unit held by the city of Hangzhou will hold 10% of the firm’s shares, while the company will hold the other 50%. The latter is now Ant’s second-largest shareholder as a result.
Analysts anticipate that Ant’s IPO efforts will resume after a company controlled by the company won the right to a block of property in Shanghai, prompting the clearance.
The development may indicate a lessening of China’s control over its domestic IT companies, according to the study. China just last week approved a new batch of video games, helping businesses like Tencent.