Alibaba's possible $15bn fall listing: A boon for Hong Kong?

Darnell Taylor
November 11, 2019

The listing would be a big deal for the Hong Kong stock exchange, which could use the boost of a high profile listing.

The public offering by the e-commerce specialist, whose primary listing is in the United States, would take place at a pivotal moment for Hong Kong's future as the city has been wracked by months of anti-government protests.

The possible listing of Alibaba's shares on the Hong Kong exchange comes amid trade tensions between the USA and China as well as ongoing political protests in Hong Kong.

Alibaba is on the lookout to scoop up among $10 billion and $15 billion in the original public supplying, Bloomberg Information cited unnamed resources as indicating, and is on the lookout to hold a listening to into the move-as mandated by the Hong Kong exchange rules-next 7 days.

Despite months of ongoing pro-democracy protests, Hong Kong's stock market has chugged along.

So far companies in Hong Kong have sold shares worth $22.3 billion via IPOs this year, compared with $24.5 billion on Nasdaq and $22.6 billion via the NYSE, according to Refinitiv data. But the Hong Kong listing would provide a second major market for investors to buy its shares, potentially including buyers on the Chinese mainland. The company has been listed in NY since 2014.

Mercury transit visible from Greece on Monday
Because of the slight difference in the orbits of Mercury and the Earth, Mercury transits only happen about 13 times per century. We'll set up in the plaza by the theater to be ready for viewers by 8 AM, and we'll stay until the transit is over at 10 AM.

The company on Monday will wrap up its most important sales event of the year - Singles' Day - offering further clues on the health of consumption.

Alibaba - which had roughly US$57 billion of cash and equivalents as of September - rode a national e-commerce boom that stemmed from an increasingly affluent middle class.

The company will next week appoint more banks to help sell its shares in Hong Kong, sources said.

Alibaba has appointed China International Capital Corp (CICC) and Credit Suisse to work on the deal and is likely to hire several more investment banks as early as next week to push ahead with a listing.

The company reported last week that second-quarter revenue increased by 40 per cent to 119.02 billion yuan (S$23.1 billion), from 85.15 billion yuan in the same quarter past year. Major investment banks led by Morgan Stanley and Goldman Sachs are now jockeying for the most senior positions behind those two.

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