Ant Group will find a “liquidity solution” for employees to monetize shares after its massive initial public offering (IPO) was pulled by regulators, according to a top executive at the company.
Eric Jing, executive chairman of the Chinese financial technology company created by Alibaba founder Jack Ma, also committed to getting the company listed.
An employee posted on Ant Group’s internal message board asking about the future of the company and how to retain talent. In response, Jing said the technology giant is looking into a “short-term liquidity solution” for employees to take effect in April, without elaborating what that might mean, a person who saw the memo told CNBC.
Ant Group declined to comment when contacted by CNBC. Many Ant Group employees will hold shares in the company as a form of compensation. Usually employees can cash out or monetize those shares if the company is acquired, goes public, or management decides to buy back stock.
“The company will eventually become a public company,” Jing’s message said, according to the person who wished to remain anonymous because they were not authorized to share the contents of the internal post.
Chinese regulators have been increasingly concerned about the power of the country’s technology companies, especially those operating in the financial sector, and have looked to roll out regulation to get a tighter grip on the industry.
Ant Group says it will help employees monetize shares and bets on IPO after cancelled IPO