After breaking last year’s sales record for Singles’ Day with more than $38 billion worth of merchandise sold in the first 24 hours, Alibaba is preparing to launch a Hong Kong share offering by the end of November.
The Chinese e-commerce giant received approval to sell up to $15 billion of new shares through a secondary Hong Kong listing. The pricing is expected on November 20 as the company plans to begin trading in the week of November 25, people with direct knowledge of the matter said.
Alibaba Group Holding, which raised a record $25 billion in its massive 2014 New York IPO, will retain its US listing while the Hong Kong IPO would be the biggest-ever cross-border secondary listing, according to Dealogic data. China International Capital Corp. and Credit Suisse will be leading the share sale with Citigroup, JPMorgan Chase, Morgan Stanley, and Goldman Sachs supposedly involved in the process as well. The Chinese company will issue 500 million new ordinary shares. 75 million “greenshoe” options will be available, according to an anonymous source. Greenshoe options give the underwriting banks the ability to sell more shares than the original amount set.
During the last earnings call, Alibaba reported second-quarter revenue increased by 40%, to 119.02 billion yuan ($16.91 billion) in the second quarter from 85.15 billion yuan in the previous year earlier. The result beat analysts’ expectations of revenue of 116.8 billion yuan, according to IBES data from Refinitiv. With a market cap of more than $485 billion, it is the largest company in Asia, and according to Bloomberg, it sits behind Apple, Microsoft, Alphabet, Amazon, Facebook, and Berkshire Hathaway on a global scale. The U.S.-listed shares are up more than 36% year-to-date.
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Sources: scmp.com, ft.com, cnbc.com
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