Beijing time on the afternoon of November 13, foreign media today quoted two people familiar with the matter as saying that Alibaba has been approved to list on the Hong Kong Stock Exchange, raising up to $15 billion. Ali responded by not commenting. Alibaba will begin a week-long investor roadshow on Wednesday after securing approval from the Hong Kong Stock Exchange’s listing committee for a massive fund-raising, one of the people said.
The price of the shares is expected to be set on November 20 and traded on the Hong Kong Stock Exchange in the last week of the month, which begins on November 25, the person said.
Alibaba listed on the New York Stock Exchange five years ago, setting a record for the largest U.S. IPO. Now, Alibaba will use the “Double Eleven” promotional momentum, into the Hong Kong Stock Exchange.
The “Double Eleven” promotion, which just ended Monday, is the world’s largest annual retail event, with shoppers spending a record $38 billion on goods this year through Alibaba’s online platform.
Alibaba initially applied for a Hong Kong listing in June, with plans to raise up to $20 billion. But now Alibaba has lowered its funding target to $10bn-$15bn. People familiar with the matter also said the Hong Kong listing could be closer to the $10bn target.
Analysts said Alibaba’s listing was also a major victory for the Hong Kong stock exchange. After a quiet summer, the Hong Kong stock exchange’s financing activity has rebounded since September.
According to Dealogic, a financial platform, HKEx has raised $21bn this year, although it still lags behind the $32bn in 2018, thanks to a series of listings worth more than $1bn in the past few months.
In addition, Alibaba’s Hong Kong listing will be one of the world’s biggest fundraising events this year, surpassing Uber’s $8bn IPO in New York in May and easily overtaking brewer Anheuser-Busch. InBev Asia Pacific’s $5 billion IPO in Hong Kong in September.
People familiar with the matter also said the main underwriters for Alibaba’s Hong Kong listing were Credit Suisse and CICC. Citigroup is also involved. There are also reports that Alibaba has also appointed Morgan Stanley and JPMorgan Chase as underwriters.