Fidelity’s implied valuation of Ant Group fell to $144 billion from $295 billion, according to the filing. Fidelity first invested in Ant Group in June 2018 at a valuation of $150 billion. The implied valuation represents a massive drop from last year’s expected IPO valuation of more than $310 billion.
Ant Group owns Alipay, a mobile payments app that handled $17 trillion worth of payment transactions last year and has seen explosive growth as it combines a number of financial offerings into a single app.
“Alibaba accepts the penalty with sincerity,” the company said in a statement regarding the record fine. Alibaba owns about a third of Ant Group.
A Reuters report from last month suggested that Jack Ma is in talks give up his stake in Ant Group, which could help lessen regulatory scrutiny by the Chinese government. But an Ant Group spokesperson issued a statement to the outlet, saying Ma’s exit “has never been the subject of discussions with anyone.”