Alibaba completes secondary Hong Kong listing
Alibaba has completed a secondary listing on the Hong Kong Stock Exchange (HKEX).
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. The secondary listing in an Asian market will likely make it easier for Asian investors to participate in the trading of the company’s stock.
Prior to the listing, the company announced the share pricing. With 500mn shares At HK$176 each (with the option of releasing a further 75mn conditional on demand), Alibaba expected gross proceeds to reach HK$88bn (US$11.24bn). In actuality, the listing did indeed raise over US$11bn, sending Aliba shares spiking 6% on the exchange.
The move comes after a bumper $38bn Singles’ Day which set new records for the company as well as the release of positive quarterly results. Standouts included revenue increasing 40% year-over-year and active consumers reaching 693mn. The company made it clear it planned to reinvest the money raised from the offering into improving “user growth and engagement”, as well as facilitating digital transformation.
Chairman and CEO Daniel Zhang said in a press release: “On this important milestone, I want to thank our customers first and foremost. My gratitude goes to all the Alibaba consumers who have supported us over the past 20 years, standing by us through our trial and error, as well as innovation for the future.
“We are also grateful for being a part of this era, which is driven by digital innovation. Through the development of the internet and digital economy, we have been granted the opportunity to fulfill our founding mission, ‘to make it easy to do business anywhere.’ We want to use digital technology to help our customers and partners embrace the era of the digital economy.”