Alibaba has set a likely price for institutional investors' shares in its upcoming IPO in Hong Kong, a source with direct knowledge of the matter told CNBC.
The e-commerce giant's shares are likely to be priced at 176 Hong Kong dollars ($ 22.48), the source said. There is just under 3% discount to the US closing price. One US listed ADS, or US deposit, equals eight ordinary shares.
It would make the listing the world's largest so far in 2019.
The retail of the secondary listing has not yet been priced, but it is expected on Wednesday. Store shares are likely to be priced at the same level as the institutional portion, the source told CNBC.
Alibaba got green light from Hong Kong regulators for the secondary listing last week, CNBC reported earlier.
The Chinese e-commerce giant will issue 500 million new ordinary shares plus 75 million greenshoe options. The latter gives the insurance banks the opportunity to sell more shares than the original amount set.
Of these 500 million shares, 1
The company previously said that retail would be priced at no more than 188 Hong Kong dollars (approximately $ 24.01).
At $ 176 in Hong Kong, the secondary listing in Hong Kong will raise $ 12.9 billion if the greenshoe option is exercised. This will make it the largest fundraising event of the year so far.
However, the Alibaba listing is likely to be exceeded in size by Saudi Aramco's listing in Riyadh, estimated in December.
So far, demand has been strong. Alibaba closed the order books for institutional investors earlier than expected, CNBC reported Tuesday.
Shares in Alibaba will start trading on November 26 in Hong Kong.
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