Published: Mon, November 11, 2019
Economy | By

Alibaba continues with Hong Kong listing

Alibaba continues with Hong Kong listing

Such hearings are typically the first big step that kicks off new listings, with the stock's trading debut usually following within two months of that barring any unforeseen circumstances.

It also comes at a time when there has been a thaw in relations between China and the United States, which have been locked in a trade war that has buffeted financial markets.

What you should know: If Alibaba realises up to the planned $15 billion IPO, it will be the biggest IPO since insurance company, AIA Group Limited which raised $20.5 billion in 2010.

The US-listed Chinese e-commerce giant is due to seek approval from Hong Kong's listing committee on Thursday, the people said, for a deal that Dealogic data showed will be the world's biggest-ever cross-border secondary listing.

The listing process and bookbuild would then proceed during the week of Nov 25, said the sources, who declined to be identified owing to the sensitivity of the matter.

An Alibaba spokesman declined to comment to Reuters on the timing of the listing.

The company had been working on an August listing in Hong Kong but the transaction was put on hold due to anti-government protests in the city creating financial and political uncertainty.

The group conducted a record breaking IPO in 2014 on the New York Stock Exchange and now enjoys a market capitalization of $488 billion.

Hong Kong's stock exchange, which reported its worst slide in profit in nearly three years, could face pressure from local protesters pushing back on influence from mainland China. It might also be seen as a vote of confidence in beleaguered Hong Kong, which has suffered from five months of disruptive civil protests against the city's government and perceived influence from Beijing in the once free-wheeling city's business and social affairs. The company has been listed in NY since 2014. Having said that, it is decreased than the $20 billion it experienced aimed to raise in the beginning.

The company reported last week that second-quarter revenue increased by 40 per cent to 119.02 billion yuan (S$23.1 billion), from 85.15 billion yuan in the same quarter previous year.

The deal is now being led by China International Capital Corp Ltd and Credit Suisse.

Like this: