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Home / Business / Shares in Alibaba Hong Kong to bring in $ 12.9 billion in secondary listing

Shares in Alibaba Hong Kong to bring in $ 12.9 billion in secondary listing



China's largest e-commerce company is expected to divide its shares to 176 Hong Kong dollars ($ 22.50) each, a person familiar with the matter told CNN Business. There is about a 3% discount to the Alibaba ( BABA ) stock price closing price in New York, where it has traded since 2014.

Price falls below 188 Hong Kong dollars Alibaba had set a ceiling last week, but it will still increase up to $ 12.9 billion, making it by far the largest public offering of the year.

"Secondary listings are an art form, not an exact science," said Jeffrey Halley, senior market analyst for Asia Pacific in Oanda.

Alibaba wants to make sure the Hong Kong listing is generating a lot of interest, so "those prices are at a level where I'm 1

00% sure these stocks will be much higher on the day," he added.

The company declined to comment.

  Alibaba & # 39; s return home is about pleasing China and buying trade war insurance

[19659003] Alibaba stopped taking orders from retail investors half a day earlier than planned, having seen stronger demand for the secondary listing.

Enthusiasm is a vote of confidence in the Asian financial center, which has been shaken by months of civil unrest. The Hang Seng Index ( HSI ) fell 4.8% last week as the city struggled with escalating levels of violence. So far this week, the index has risen by around 2.2% despite a further escalation in violence centered around the siege of a university.

The company founded by billionaire founder Jack Ma collected $ 25 billion in an initial public offering on the New York Stock Exchange that broke records as history's largest stock exchange listing.

  Alibaba Singles Day Sales Increase $ 38 Billion, Breaking Last Year & # 39; & # 39; s record

In the secondary listing, eight Hong Kong shares will be equal to one of Alibaba's listed New York shares, the company said in a US regulatory filing last week. [19659010] The listing will exceed AB InBev's ( BUD ) approximately $ 5 billion listing of its Asia operations in Hong Kong earlier this year as well as Uber & # 39; s ( UBER ) $ 8.1 billion debut in New York, the biggest of the year so far. It can also cement the Hong Kong Stock Exchange's status as the largest public offering venue of the year.

The offer is the latest sign that investors and companies haven't been saved by months of protests in Hong Kong, which recently plunged into its first recession in ten years.

Alibaba is scheduled to list shares on November 26.


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