Alibaba set to raise up to $12.9bn in largest Hong Kong listing in nine years

The Chinese e-commerce giant sets world record for a cross-border secondary share sale

Alibaba is set to raise up to $12.9 billion (£10bn, €11.5bn) in its secondary listing in Hong Kong, the largest share sale in the city in nine years and a world record for a cross-border secondary share sale.

The Chinese e-commerce giant has priced its shares at HK$176 ($22.48) each, a discount of 2.9 per cent on its New York closing price.

This price means 0'>Alibaba will raise at least HK$88bn ($11.3bn) – a symbolic total as the number 8 is deemed as good fortune in Chinese culture. Alibaba has also chosen the stock code 9988 for its listing, combining the two lucky numbers. Shares of Alibaba will begin trading in Hong Kong on Tuesday November 26.

However, the total raised from the deal could eventually reach $12.9bn if a so-called “greenshoe” option is exercised, selling an additional 15 per cent of shares to investors.

What is your sentiment on BABA?

116.48
Bullish
or
Bearish
Vote to see community's results!

Alibaba will issue 500 million new ordinary shares plus 75 million “greenshoe” options. The latter will give bankers the ability to sell more shares than the original set amount.

Of those 500 million shares, 50 million will be reserved for retail investors.

FURTHER READING: Alibaba's sales jumped 25% to $23bn during Singles' Day FURTHER READING: Alibaba uncovers secret to Q2 success

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image