Tencent doesn’t need to rush to list this fintech unit. Appetite for mega-IPOs is likely to be satiated those of Alibaba and Saudi AramcoChina’s most ubiquitous company is hiding one of its most valuable assets. That needs to change.best known for the WeChat messaging system that almost everyone in China uses, has a growing fintech business. But it’s getting overshadowed by the games and social media divisions.
A turnaround could be near, Sanford C Bernstein senior analyst David Dai wrote in a recent series on China’s fintech sector. He estimates that a maturing market will ease cut-throat competition and allow both companies to take a greater share of the money that sloshes through their payments platforms.
This indicates that 40% to 58% of Tencent’s current market cap is locked up in this hitherto hidden division. Bernstein has a base case of $210bn for Ant, reaching as high as $320bn.