Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Alibaba files for HK listing that may raise $20 billion as soon as third quarter

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/13/2019 | 06:22am EDT
FILE PHOTO: The logo of Alibaba Group is seen at the company's headquarters in Hangzhou

HONG KONG (Reuters) - China's biggest e-commerce company Alibaba Group Holding Ltd has filed confidentially for a Hong Kong listing that could raise up to $20 billion 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 authorized 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 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.

(Reporting by Julie Zhu in Hong Kong; Additional reporting by Sam Nussey in Tokyo and Mekhla Raina in Bengaluru; Writing by Jennifer Hughes; Editing by Christopher Cushing and Muralikumar Anantharaman)

By Julie Zhu

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL -0.04% 26536.82 Delayed Quote.13.76%
HANG SENG 0.24% 28215.09 Real-time Quote.9.17%
NASDAQ 100 0.47% 7627.05087 Delayed Quote.19.93%
NASDAQ COMP. 0.32% 7909.971271 Delayed Quote.18.83%
S&P 500 -0.12% 2913.78 Delayed Quote.16.38%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
08:54pAsian shares going nowhere as G20 looms large
RE
08:53pChina's funding for small firms still not improved - auditor
RE
08:51pTo dodge trade war, Chinese exporters shift production to low-cost nations
RE
08:51pHuawei employees collaborated with Chinese military on research projects - Bloomberg
RE
08:37pCorrection to Treasury Comment
DJ
08:30pMARKETS AND MARKETS : Metal Implants and Medical Alloys Market worth $17.6 Billion by 2024
PU
08:26pCentral Americans yearning for U.S. turn to smugglers amid Trump asylum crackdown
RE
08:26pU.S. Senate passes border aid bill, sends it to House
RE
08:26pAs migrants languish in border facilities, U.S. Congress struggles to finalise emergency aid
RE
08:09pGLOBAL AFFAIRS CANADA : Minister Carr in Toronto to highlight opportunities worldwide for Canadian businesses to grow, create jobs
PU
Latest news "Economy & Forex"
Advertisement