Alibaba sets retail price for Hong Kong-listed shares after overwhelming response for global tranche of US$13.9 billion secondary listing
- Alibaba Group Holding to price its retail shares at no more than HK$188 (US$24) each, according to a company statement
- The e-commerce giant will raise up to US$13.86 billion in the first secondary listing on Hong Kong’s stock exchange, in a deal that would catapult the city back to the top of global ranks as the IPO capital
Alibaba Group Holding has picked auspicious numbers for both its stock code and set the offer price for retail investors in its sale of new shares in Hong Kong, after receiving overwhelming response for the global tranche of its US$13.86 billion secondary listing.
The 12.5 million new shares in the Hong Kong retail offering will be priced at no more than HK$188 (US$24) each, the company said in an email statement on Friday. The international offering tranche of 487.5 million shares will be set by November 20 after a marketing process.
The size of the retail portion may be increased to as many as 50 million shares, subject to demand and a clawback mechanism. The final price will be set at the lower of the international offer price and HK$188, it added.
The stock’s code on the Hong Kong stock exchange is 9988, which rhymes with “prosperity forever.” The numbers eight and nine are considered auspicious in both Cantonese and Mandarin Chinese.
“During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright,” Daniel Zhang, Alibaba’s executive chairman, said in a letter to investors on Friday. “We hope we can contribute, in our small way, and participate in the future of Hong Kong.”
Alibaba, the record holder of the largest global initial public offering, unveiled a secondary listing plan in Hong Kong earlier this week, in a vote of confidence for the local financial market as the worst political crisis in the city’s history threatens its status as a global financial centre.
