BEIJING – Chinese e-commerce giant Alibaba has raised at least $ 11 billion in a stock offering in Hong Kong, and online the city's largest offering since 2010 despite recent political turmoil.
set the price for the secondary offer on Wednesday Wednesday at $ 176 in Hong Kong ($ 22.50) per share. The price is 2.9% off the closing price of the shares traded in New York. It is also below the original maximum offer price of $ 1
The company's shares will start trading on November 26.
The listing in Hong Kong is a rare boost for Hong Kong at a time when the former British colony is involved in political turmoil.
It is Hong Kong's largest stock offering since AIA insurer
collected nearly $ 18 billion in a stock exchange listing in 2010. Alibaba's stock exchange listing in 2014 set a record $ 25 billion.
The company's stock code, 9988, is a homonym in Chinese for "eternal prosperity."
The company already has a significant cash pile of more than $ 30 billion, but analysts said it is lifting momentum from its recent strong earnings, including $ 38.4 billion in "Singles Day" sales November 11, up 26% from a year earlier.
Alibaba and rival JD.com
reported total sales of $ 70 billion during the annual marketing event that has become the world's busiest online shopping day.
"The benefit for Alibaba is two-fold. It can diversify its shareholder base during the US-China trade war, and it can command a high price, partly because Hong Kong investors are fighting for something positive amid protests," said Jasper Lawler of London Capital Group in a comment.  If a "greenshoe" total listing option is exercised, the proceeds of the offer may be up to $ 12.9 billion.
But that is well below expectations originally for a stock offer of up to $ 20 billion.  The company said it wants to use its proceeds from stock sales to expand its users, help businesses with "digital transformation and continue to innovate and invest in the long term."
Alibaba's first public offering in 2014 was held in the United States at due to regulatory restrictions that prevented a listing in Hong Kong.
The company's chairman and chief executive officer, Daniel Zhang, issued a statement else announcing the long-awaited listing last week, saying that Alibaba missed Hong Kong with regrets ”in its 2014 list.
“During this time of ongoing change, we continue to believe that the future of Hong Kong is still bright. We hope we can contribute in our small way and participate in Hong Kong's future, "Zhang said.
Earlier this month, Alibaba Group Holding Ltd. reported a net profit of 72.54 billion yuan ($ 10.15 billion) in July September
Online retailer reported sales of 119.02 billion yuan ($ 16.65 billion) during the period.
Alibaba's founder, Jack Ma, resigned as chairman in September, continuing as a member of Alibaba Partnership, a group with 36 members entitled to nominate a majority of the company's board.
E-commerce pioneer Ma, 55, is China's richest entrepreneur with a net worth of $ 39 billion, according to the Hurun report, which tracks the country's prosperity.