Alibaba could raise up to $12.9b in Hong Kong listing

REUTERS/Aly Song

Chinese e-commerce giant Alibaba will raise up to $12.9 billion (£9.98 billion) in its Hong Kong secondary listing, pricing its shares at a 2.8% discount to their last closing price in New York, two sources with direct knowledge of the matter said.

The company has given guidance to prospective institutional investors that its shares will price at HK$176 each, the sources told Reuters.

The deal will raise HK$88 billion ($11.3 billion) before a so-called ‘greenshoe’ over-allotment option is exercised, which could take the total to $12.9 billion, according to the two people, who asked not to be named because the information has yet to be made public.

Alibaba had previously indicated it could raise up to $13.4 billion if the greenshoe option is exercised.

In Hong Kong dollar terms, the pricing is symbolic because 8 implies prosperity in Chinese culture.

Alibaba did not immediately respond to a Reuters request for comment.

The price for the retail component of the deal will be finalised in Hong Kong on Wednesday and sources said institutional investors were due to be told at the same time how much stock they will be allocated.

Alibaba shares closed in New York on Tuesday at $185.25, which was 0.35% higher for the session.

In the secondary listing, eight Hong Kong shares will be equal to one of Alibaba’s New York-listed American Depositary Shares (ADS), according to documents lodged with the U.S. regulators.

China International Capital Corporation (CICC) and Credit Suisse were the sponsors for the Hong Kong deal which is the world’s biggest cross-border secondary listing to date, according to Dealogic.

The shares will be fully interchangeable between the New York and the Hong Kong stock exchanges.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.