Julie Zhu. Kane Wu. Nikhil Nainan

HONG KONG, (Reuters) – Warburg Pincus in the United States, a large global investor, reduced Ant Group’s valuation to less than $200 billion. This was according to Reuters sources with direct knowledge.

Sources familiar with the matter stated that there are no indications Ant’s failed mega IPO will soon be revived.

Ant’s 2018 private funding raised a large amount of money from Warburg. Warburg was the main investor.

Ant is valued by the private equity firm. Alibaba (NYSE) Group Holding is well short of $315 billion, as was the case one year ago when it went public. This would have made Group Holding the biggest IPO in history if not for its debacle.

Warburg’s reduction of Ant’s value comes amid uncertainty about the future of the payments to loans business giant. This will impact the returns of global investors that were betting on its explosive growth.

Warburg’s valuation model for the company was also modified, the source said, invoking “regulatory developments” and the effects of ongoing restructuring.

Ant and Warburg refused to comment. They were not authorized to talk to the media so they declined to identify their sources.