Alibaba plans $13bn SEHK listing after record Singles’ Day

Chinese ecommerce giant Alibaba is set to list on the Hong Kong Stock Exchange (SEHK) on 26 November.

That’s according to a report from Reuters, which suggested the company is planning to raise over $13bn from the secondary listing.

Alibaba already listed on the New York Stock Exchange (NYSE) five years ago in 2014. To this day the biggest IPO ever, the occasion raised some $25bn for the company.

According to the Financial Times, Alibaba has begun a share sale roadshow. Following that, a final price will be set on 20 November.

The move comes hot on the heels of Alibaba’s latest Singles’ Day sale. The $38bn event set new records for the company. Nevertheless, co-founder and former CEO Jack Ma said the sale did not meet its potential owing to adverse trading conditions such as the date falling on a weekday.

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The crucial nature of the event to Alibaba was further demonstrated by the beefing up of its stake in subsidiary logistics company Cainiao. Pumping in $3.3bn, Alibaba increased its stake from 51% to approximately 63%.“

Logistics is a key pillar of the Alibaba Business Operating System,” said CEO and Executive Chairman Daniel Zhang. “It allows us to offer the best service to customers and to effectively advance our New Retail strategy. Cainiao strives to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world.”

Prior to that, the health of Alibaba’s finances was demonstrated by the release of quarterly results. Standouts included revenue increasing 40% year-over-year and active consumers reaching 693mn.

Zhang said in the press release: “Our digital economy continues to thrive and prosper. We aim to serve over one billion annual active consumers and help our merchants achieve over RMB10 trillion in annual gross merchandise volume by end of fiscal 2024. We will continue to invest in the user experience and innovative technology to create new value for consumers, as well as the millions of enterprises undergoing digital transformation in the new digital economy.”

(Image: Alibaba)