Alibaba, the Chinese e-commerce giant has listed 500,000,000 global shares at the Hong Kong stock exchange. Tagged the biggest listing for 2019, it is alleged that the company could make up to HK$100 billion ($12.86 billion).
The 500,000,000 ordinary shares Global Offering comprises of 12,500,000 public retail offerings and 487,500,000 global subscriptions.
The shares were priced at 176 Hong Kong Dollar per Share ($22.49 per share) which is a discount of 2.9% against its closing price in New York.
Alibaba’s listing of the 500,000,000 shares in November is as a result of the unrest in Hong Kong. The company had initially planned to list in June but couldn’t due to the anti-government protest that sprung up in the country.
See Also: Alibaba partners Rwanda to Launch a 4-year eCommerce Training for Rwandan students
Jasper Lawler, the Head of Research at London Capital Group noted that Alibaba’s listing on Hong Kong Stock Exchange is strategic for the company which has huge cash stockpiles. As a result, they do not need to raise funds in Hong Kong.
In his words, “The advantage for Alibaba is twofold, it can diversify its shareholder base during the US-China trade war and it can command a high price in part because investors in Hong Kong are clamouring for something positive amid the protests.”
This listing is considered symbolic as the number 8 represents prosperity and good fortune in the Chinese culture. The company’s stock code also contains the symbolic figure 9988.
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