Alibaba shares rise in Hong Kong debut, creating city’s biggest stock with HK$4 trillion market capitalisation
- Shares close at HK$187.60 on first day of trading in Hong Kong, handing investors a 6.6 per cent gain over the HK$176 offer price
- Alibaba is the most traded stock with HK$14 billion of shares changing hands, accounting for 10.5 per cent of main board turnover
Alibaba Group Holding’s shares rose on their Hong Kong market debut after the Chinese technology company completed the world’s biggest stock offering this year.
The shares closed at HK$187.60 or 6.6 per cent above the offer price of HK$176, creating the city’s biggest stock with a market value of HK$4 trillion ($513 billion). It was the most traded stock with HK$14 billion worth of shares changing hands, making up 10.5 per cent of turnover on the main board, according to exchange data.
The gain ranks among the best first-day performances involving the biggest IPOs in the city since 2005, after AIA Group (17.1 per cent), Bank of China (15.3 per cent), Industrial and Commercial Bank of China (14.7 per cent) and China Unicom (8.9 per cent).
Alibaba, which trades under stock code 9988, invited 10 customers and partners from eight markets in four continents to strike at the gong in the traditional opening ceremony, a move to symbolise the global nature of the company’s operations.
Financial Secretary Paul Chan Mo-po and Hong Kong Exchanges and Clearing chairwoman Laura Cha Shih May-lung, attended the listing ceremony. Alibaba chairman and chief executive Daniel Zhang, executive vice-chairman Joe Tsai and chief financial officer Maggie Wu were also present, while founder Jack Ma delivered a video message preceding the debut.
There are now five companies with a trillion-dollar capitalisation in local currency terms on the local bourse. The other four are Tencent Holdings, HSBC, China Mobile and China Construction Bank, according to stock exchange data.
The Alibaba listing is a shot in the arm for Hong Kong at a time when the city is seeking to rebound from its worst political crisis in history, with the economy in a technical recession. The local bourse has recouped some of the losses since its worst drubbing in four years last quarter, and companies including Budweiser Brewing Company APAC have revived and completed their stock offerings to help the exchange climb to the top of global IPO league table this year.