Alibaba's stock jumped as high as 7% during the Chinese company's debut on the Hong Kong market.
Shares were trading at 188.10 Hong Kong dollars (approx. $24.03), significantly higher than the 176 Hong Kong Dollars (approx. $22.50) they were priced at. Shares of Chinese e-commerce major Alibaba Group Holding had climbed 4.5% at a gray market venue in Hong Kong on Monday, Nov 25 ahead of their debut on the stock exchange's mainboard.
Alibaba’s secondary listing could raise as much as $12.9 billion, which would make it the largest public stock so far in 2019. The Chinese firm still holds the title for the biggest IPO in history, when it raised a record $25 billion in its New York listing back in 2014. The company is the fifth most-traded company in New York this year, averaging $2.6 billion a day.
How many shares did Alibaba issue?
Alibaba initially issued approx. 500 million new ordinary shares. Additionally, the company added another 75 million "greenshoe" options, which will allow underwriting banks to sell more shares the initial amount.
China International Capital Corp. and Credit Suisse are leading the share sale, with Citigroup, JPMorgan Chase, Morgan Stanley, and Goldman Sachs involved in the process too.
How will this listing impact the Hong Kong financial market?
Alibaba’s listing is a huge incentive for the Hong Kong market. The ongoing pro-democracy protests that have escalated in recent weeks slowed down business and created political turmoil.
The Chinese giant had hoped to list in Hong Kong back in 2014 but eventually chose New York for its $25 billion IPO. The reason? Hong Kong regulators hadn’t initially accepted Alibaba’s unusual governance structure.
For more info about Alibaba’s Hong Kong listing, read our previous article in the series.
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