Alibaba Group, the title holder for world's largest IPO, has announced plans for a massive secondary stock offering in Hong Kong to take place in late November, 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 hub.
According to public filing, China's e-commerce giant will issue 500 million new shares, with 487.5 million set aside for international offering and the rest for Hong Kong public. The offering, which was approved by the Hong Kong stock exchange, includes a 75 million share greenshoe option and aims to raise between $10 billion and $15 billion from the sale which would make it the biggest equity fundraising of the year.
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Despite the Hong Kong sale, Alibaba, which raised a record $25 billion in 2014 in New York, will retain its US listing, because of its deep capital markets while the group taps into the growing pool of funds in Asia with its latest plan.
According to the SCMP, the massive stock sale will give a much needed boost for the city gripped by more than five months of anti-government protests and a simmering US-China trade war, pushing the local stock exchange on a home run for global IPO crown this year in competition with the New York Stock Exchange and Nasdaq.
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The move represents a major boost for the city gripped by more than five months of anti-government protests and a simmering US-China trade war, and puts the local stock exchange on a home run for global IPO crown this year in competition with the New York Stock Exchange and Nasdaq.
Alibaba has been working on a plan to list its shares in Hong Kong – what the company calls its “natural first choice” – since it abandoned the local market...
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