Alibaba Group Holding Ltd. (9988.HK) has fully exercised the overallotment option for its initial public offering in Hong Kong.
The e-commerce giant, which is also listed in the U.S., raised an additional 13.17 billion Hong Kong dollars (US$1.68 billion) in net proceeds, Alibaba said in a filing late Tuesday.
Alibaba said it has received approval from the Hong Kong exchange to list the additional 75 million shares that will start trading Dec. 6.
Last month, the company raised about $11.2 billion from a secondary listing, with an option to exercise an overallotment, making it the world's largest IPO so far this year. The size of this deal is likely to be eclipsed in the coming weeks by Saudi Aramco's blockbuster offering, which could top the record $25 billion that Alibaba raised in its 2014 IPO in New York.
Alibaba intends to use the IPO proceeds to make inroads into new segments and shore up its core e-commerce business.
The company plans to use the money raised to fund initiatives outside of e-commerce such as cloud computing and entertainment. It also plans to invest in growing the number of users at its flagship business amid increasing competition from domestic rivals such as Meituan Dianping and Nasdaq-listed Pinduoduo.
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