China based private equity firm Boyu Capital is consolidating a new China focused fund aiming to raise as much as $6 billion. This was revealed by sources involved with the matter but sought anonymity since the company is yet to let out this information to the general public.
Boyu Capital has invested in several notable Chinese tech giants including Alibaba Group Holding (BABA) backed Ant Group. The source further revealed the latest fund will be the fifth and largest U.S. dollar-denominated fund by Boyu and it will be happening soon.
This comes after authorities suspended much anticipated Ants’s dual IPO in Shanghai and Hong Kong which was to happen in November. This was set to be the world’s largest IPO and investors such as Buyo were expecting to reap big from it.
In the IPO Ant was expecting to raise $37 billion leaving the company with a market valuation of $315 billion. Following this suspension, China is becoming more strict on its home grown companies this has exposed investors in Chinese companies to public scrutiny.
An official from the China’s central bank said the suspension was made to protect consumers and investors.
In its reply, Ant said it will comply with restructuring plans from the regulators.