(Yicai Global) Aug. 26 -- The initial public offering of Ant Group is set to hand China's national pension fund a four-fold return on its investment in the world's most valuable fintech unicorn.

The investment has "paid off in spades, and the fund has spent the money on behalf of the Chinese people," Wang Zhongmin, former vice chairman of the National Council for Social Security Fund, said at a recent forum, adding that Ant is estimated to be worth between USD200 billion and USD240 billion.

The fund's windfall from that is estimated at CNY20 billion to CNY30 billion (USD2.9 billion to USD4.3 billion) based on the NSSF's 2.9 percent stake. The fund will own 2.33 percent of Ant post-IPO.

Hangzhou-based Ant filed for dual listings in Hong Kong and Shanghai yesterday. The operator of China's largest mobile payments platform Alipay unveiled plans on July 20 to list on Shanghai's Nasdaq-like Star Market and the Hong Kong Stock Exchange. It was set up in 2014 by Alibaba Group Holding, China's most valuable company, and its billionaire founder Jack Ma.

Ant wrapped up its Series A funding round in 2015, bringing in eight strategic investors, including CNY7 billion from NSSF, and large domestic insurers, with NSSF taking 5 percent, the highest among them, according to public records. The company was then valued at USD35 billion to USD40 billion, Shanghai Securities News reported at the time. It offered NSSF a discount price, the report said.

Ma invited NSSF to invest in the company. He, Alibaba co-founder Lucy Peng and the investment team put forward the idea of inviting the fund to become a shareholder in a visit to Beijing in 2014. This enabled China's people to indirectly share in the dividend and the fruits of Ant's growth, Ma said then.

Thanks to the special approval of China's cabinet, the State Council, and the Ministry of Finance and the 'exclusive discount' Ma's team offered NSSF, the investment finally eventuated over six months later, though rules in force at that time barred the fund from investing in private businesses.

Ant is not only the first, but also the only private firm that the NSSF has bought into, Wang said.

Though as a reserve fund the balance assets and income of the social security fund may not be allotted to immediately pay social premiums, investment income can be used if the amount in the pension account falls short, with the funds to be distributed to local human resources and social security bureaus to pay pensions, subject to approval by the State Council.

Editors: Liao Shumin, Ben Armour