Alibaba eyes $20 billion second listing in Hong Kong
May 31 2019
The listing would be the world's biggest follow-on share sale in seven years and would come after its record-breaking float in 2014, when it raised $25 billion.
The e-commerce giant is working with financial advisers on the offering and is aiming to file an application confidentially in Hong Kong as early as the second half of this year, three people said on condition of anonymity as the plans are not made public yet.
Alibaba founder Jack Ma said a year ago he would "seriously consider" a listing in Hong Kong when it was reported to be preparing to allow dual-class share listings.
The second listing is aimed at boosting its liquidity and diversifying its funding channel, according to one of the sources.
Neither Alibaba and the Hong Kong stock exchange have provided comment on these reports. The city is engaged in an increasingly crowded battle for technology listings as exchanges from Shanghai to Singapore ease their rules to attract fast-growing companies with dual-share classes and, in some cases, unproven business models.
Efforts to lure Alibaba went all the way to the top of Hong Kong's government, with Chief Executive Carrie Lam exhorting Mr Ma to consider a listing in the city. The Chinese e-commerce and entertainment giant is now listed on the New York Stock Exchange, following an IPO in 2014.
Since its U.S. listing, Alibaba has almost doubled in size to become the largest-listed Chinese company with a market value of more than $400 billion. Sources from the company reported the info.
But since then something has changed in the Hong Kong Stock Exchange (HKEX).
The message about a second listing comes as the trade tensions between China and the USA continue to flare up. With the CDR route closed - at least for now - having Alibaba's shares traded in Hong Kong may be the next best option.
On April 24 previous year, HKEX approved the biggest change to its initial public offering rules in two decades, by allowing technology firms that have shares with different voting rights to go public in Hong Kong.
The remaining Alibaba shares are expected to generate around $40 billion for Altaba stockholders.
Alibaba (-0.052%) is reportedly considering a second public offering, this time on the Hong Kong Stock Exchange (SEHK). In this upcoming listing, Alibaba is reportedly hoping to raise another United States dollars 20 Billion.
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