Alibaba to pay $32.3m for Hong Kong listing
Chinese e-commerce giant is expected to raise $12.9bn from next week’s IPO
Chinese e-commerce giant will pay $32.3m (£24.9m, €29.1m) in fees to banks chosen to lead its Hong Kong listing.
The IPO will be lead by two co-sponsors, China International Capital Corp and Credit Suisse, Reuters reports. Citigroup Inc, JP Morgan and Morgan Stanley were appointed as joint global co-ordinators. HSBC and Industrial and Commercial Bank of China also have senior roles.
Alibaba is paying $28.1m for the sale of 500 million of its shares, according to the US Securities and Exchange Commission (SEC).
The total amount of fees will climb up to $32.3m if Alibaba issues an additional 75 million shares.
The amount received by each bank was not revealed. Usually the co-sponsors are paid the most.
The banks will also get their profits from the 1 per cent brokerage fee paid by investors who buy the stock in the secondary listing.
Alibaba's IPO is scheduled for next Tuesday, November 26. The company will raise up to $12.9bn, according to the SEC.
The investors' interest listing was boosted by record sales during the Singles' Day in China on November 11. The company revealed it sold goods worth $38.4bn in just 24 hours.
FURTHER READING: Alibaba plans Hong Kong’s first paperless IPO