Alibaba plans to raise $20bn in second Hong Kong listing
By Caoimhe Toman
Date: Tuesday 28 May 2019
(Sharecast News) - Alibaba is considering raising as much as $20bn through a second listing on the Hong Kong Stock Exchange after its 2014 record-breaking stock market debut in New York that saw it raise $25bn.
Reports said that the money raised in Hong Kong was intended to help Alibaba "diversify funding channels and boost liquidity".
In turn, the new financing would allow Alibaba to continue investing in technology even as the trade tensions between China and the US intensify.
The e-commerce giant was reportedly set to file an application confidentially in Hong Kong by as early as the second half of 2019.
Some sources close to the matter told Reuters that the details of the proposed transaction were not yet clear and that the figure which the Asian e-commerce giant was looking to raise might be closer to between $10bn and $15bn. If it were to aim for $20bn, then the listing would be the sixth-biggest follow-on share sale ever, according to data from Refinitiv.
The listing would also represent a win for the Hong Kong venue, which lost out to its rival in New York in 2014 because its listing rules at the time did not allow for a company with Alibaba's corporate structure, based on shares with different voting rights, so that only a small clique decides on the members of the outfit's board.
It would also rival the 2010 flotation by AIA Group.
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