Attendees pass an Alibaba.com show at CES 2019 in Las Vegas.
David Becker | Getty Images
Alibaba is planning a secondary listing in Hong Kong that is likely to take place last week in November and raise about $ 13 billion, a source with direct knowledge of the case told CNBC.
The trading giant will issue 500 million new ordinary shares plus 75 million "greenshoe" options, said the source, who wished to remain anonymous because they do not have the authority to speak publicly. Greenshoe options give insurance banks the opportunity to sell more shares than the original amount set.
Alibaba got greenlight from Hong Kong regulators on Tuesday to go ahead with stock sales, the source said.
The Chinese company could raise around $ 1
Alibaba will be listed in New York where it completed an IPO (original public offering) in 2014, the source said. It remains the largest stock exchange listing in history, raising $ 25 billion.
Alibaba declined to comment when contacted by CNBC. A spokesman for the Hong Kong Stock Exchange was not immediately available for comment.
With a Hong Kong listing, the Hangzhou, China-based company will move closer to home, potentially giving investors in the world's second-largest economy more of a chance to buy shares.
Alibaba's listing in Hong Kong would make it the biggest gathering of the year, ahead of Uber which raised over $ 8 billion in May. It will also be a huge boost for the Hong Kong market which has seen business slow amid ongoing pro-democracy protests, which have escalated in recent days.
Alibaba comes on the back of the successful Singles Day shopping event where it set a new sales record. Alibaba's shares with the US are up over 36% this year, while it continues to show growth in its core business, despite a slowing Chinese economy, as well as large revenue jumps in newer departments such as cloud computing.
<! – ->