Alibaba Group Holding Ltd BABA 8.09% co-founder Jack Ma’s wealth eroded by nearly $3 billion as the Chinese conglomerate’s shares fell more than 8% in New York after its Ant Group’s dual listings in Shanghai and Hong Kong were suspended, according to the Bloomberg Billionaires Index.
What Happened: Ma, a former English teacher, is still worth $56.1 billion — having added $11.5 billion to his wealth year-to-date, as per Bloomberg. The Chinese billionaire owns 4.2% of Alibaba and one-third of Ant, valued at $27.4 billion at the initial public offering price.
Why It Matters: The IPO, expected to raise $34 billion, was suspended by the Shanghai Stock Exchange on Tuesday. The offer was oversubscribed with bids exceeding the value of shares by 870 times.
The Ant listing would have also reportedly created at least 18 billionaires, which include early investors and employees.
Price Action: Alibaba shares closed nearly 8.1% lower at $285.57 on Tuesday and fell 0.16% in the after-hours session.