Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Alibaba files for Hong Kong listing that may raise $20 billion as soon as third quarter - source

Stock MarketsJun 13, 2019 11:21
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A logo of Alibaba Group is seen at an exhibition during the World Intelligence Congress in Tianjin

By Julie Zhu

HONG KONG (Reuters) - China's biggest e-commerce company Alibaba (NYSE:BABA) Group Holding Ltd has filed confidentially for a Hong Kong listing that could raise up to $20 billion (15.79 billion pounds) as early as the third quarter of this year, a person with direct knowledge of the matter said.

A deal of that size would be the biggest follow-on share sale globally in seven years and give Alibaba funds for technology investment - a priority for China as economic growth slows and a trade spat with the United States intensifies.

Alibaba holds the record for the world's largest initial public offering with its $25 billion float in New York five years ago.

Then, the company had initially hoped to float in Hong Kong but the tech firm's management structure clashed with the city's listing rules. Hong Kong Exchanges & Clearing, the city's bourse operator, changed its listing rules last year - primarily with the aim of attracting Chinese tech groups.

Alibaba declined to comment on the deal when contacted by Reuters. Japan's SoftBank Group, which is Alibaba's largest shareholder with a 28.7% stake, did not immediately respond to a request for comment.

The person with knowledge of the matter was not authorised to speak with media and so declined to be identified. News of the filing was first reported by Bloomberg.

Investment banks China International Capital Corp Ltd and Credit Suisse (SIX:CSGN) Group AG are leading the deal. Both banks declined to comment. No other banks have been formally mandated as yet.

BIG DEAL FOR HONG KONG

A listing by Alibaba in Hong Kong will be seen as a victory for the city by its stock-focused market professionals, who mourned the lost trading revenue when the e-commerce group chose to float in New York.

Trading in Alibaba shares averaged $2.2 billion a day in the first quarter of this year, according to Refinitiv data, compared with average daily turnover on the Hong Kong exchange of $12.9 billion in the same period.

Listing in Hong Kong would also give mainland Chinese investors their first direct access to one of their country's biggest success stories, via the stock connect trading link between Hong Kong, Shanghai and Shenzhen.

Since its U.S. listing, Alibaba's market value has nearly doubled and is now $423 billion, the largest in Asia-Pacific.

The filing comes amid growing political unrest in Hong Kong this week that raised concerns over the potential impact on the city's financial market and businesses.

Thousands of protesters have taken to the streets in the southern Chinese territory this week over a planned extradition agreement with mainland China.

Logistics real estate developer ESR Cayman Ltd on Thursday pulled what would have been the largest Hong Kong listing so far this year, citing "current market conditions".

So far this year, the benchmark Hang Seng index has gained 5.6% compared with a 22.4% jump in China's blue-chip CSI 300 and a 14.9% rise in the U.S. S&P 500.

Alibaba files for Hong Kong listing that may raise $20 billion as soon as third quarter - source
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email