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Alibaba finishes books for $ 13.8 billion in Hong Kong



A logo for the Alibaba Group is seen during Alibaba Group's 11.11 Singles & Day 39 global shopping festival at the company's headquarters in Hangzhou, China, November 11, 2019.

Aly Song | Reuters

Alibaba will close its order books for institutional investors early for its upcoming secondary listing in Hong Kong, a sign that demand for shares is strong, two sources with direct knowledge of the matter told CNBC.

The e-commerce giant will close its book at 1

2 noon on Tuesday, earlier than initially scheduled, said the sources, who wanted to remain anonymous because they are not authorized to speak publicly. One of the sources who spoke to CNBC said the book will close half a day earlier than originally planned.

An Alibaba spokeswoman declined to comment when contacted by CNBC.

"The book is well covered," said one source. "The international offer received strong feedback."

Alibaba received greenlight from Hong Kong regulators for the secondary listing last week, CNBC reported earlier.

News of Alibaba's plans to close the books early was first reported by Reuters.

19659009] The Chinese e-commerce giant will issue 500 million new ordinary shares plus 75 million "greenshoe" options. These give the insurance banks the opportunity to sell more shares than the original amount set.

Of these 500 million shares, 12.5 million will be reserved for retail investors. Alibaba has the opportunity to increase the portion available to retail investors to 50 million shares or 10% of the total offering.

The company previously said that retail would be priced at no more than 188 Hong Kong dollars (approximately $ 24.01). However, the remaining shares for institutional investors may be priced higher than that.

At 188 Hong Kong dollars per share, the total amount raised will be around $ 13.8 billion if the green fee option is exercised.

Alibaba will set the final offer price by November 20 in Hong Kong. Shares of Alibaba will start trading on November 26.


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