Alibaba to close books early on $13 billion share offer

Secondary listing of Chinese e-commerce giant attracts strong demand

Alibaba will close the order books on its secondary Hong Kong listing early, after the major capital raising exercise attracted strong demand.

Books will now shut to institutional investors on Tuesday at 12pm EST in New York, half a day earlier than planned, Reuters reports.

The decision was made by the company on Monday after higher than expected demand for the $13.4bn (£10.3bn) listing. The e-commerce and technology company is offering 500 million shares to investors in the biggest listing of its kind this year.

The success of the listing comes despite the protests that have brought Hong Kong to a standstill in recent weeks, with the huge share offer seen as a vote of confidence in the city.

Alibaba’s chief executive Daniel Zhang (pictured) said last week that “during this time of ongoing change, we continue to believe that the future of Hong Kong remains bright.”

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The listing comes in the wake of strong revenue and profit growth for the quarter ending September 30, 2019. The company announced a better-than-expected 40 per cent rise in revenue, driven primarily by growth in its cloud computing and e-commerce activities.

Alibaba’s stock is due to start trading on November 26.

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