Alibaba Group Launches Hong Kong Initial Public Offering

Alibaba Group Holding Ltd. (NYSE: BABA) (“Alibaba” or “Group”) today announced the launch of the Hong Kong Public Offering (“This Public Offering”) as part of the Global Offering (“This Offering”) on 15 November 2019 Hong Kong time. The offering will issue 500,000,000 new shares of common stock (“shares”), the Group’s common stock will be listed on the main board of the Stock Exchange of Hong Kong Limited (“Stock Exchange”) under the name 9988.

Alibaba Group Launches Hong Kong Initial Public Offering

U.S. Depositary Shares representing the Group’s common stock will continue to be traded on the New York Stock Exchange (“NYSE”) and each U.S. Depositary Share represents eight common shares. Upon completion of this Hong Kong listing, the Group’s Hong Kong-listed shares and the NYSE-listed U.S. Depositary Shares will be fully convertible.

“Alibaba’s mission is to make the world do not have difficult business, to do a good company for 102 years as the vision. We will continue to pursue our three strategies of globalization, domestic demand, big data and cloud computing to achieve our goal of serving global consumers through our platform over the next five years, including more than 1 billion Chinese consumers, and creating more than RMB10 trillion in consumption. “Hong Kong is one of the world’s most important financial centres and we are proud to have the opportunity to participate in the future of Hong Kong,” said Zhang Yong, Chairman and CEO of Alibaba Group. ”

Listing in Hong Kong will enable more users from across Asia and beneficiaries of the Group’s digital economy to invest and participate in the group’s growth. In addition to expanding the Group’s overall investor base, this offering will tap into the asian market’s ample new capital and create opportunities for global investors to trade the Group’s shares close to the full-time period.

The offering will initially consist of 12,500,000 newly issued shares and 487,500,000 newly issued shares (“International Offerings”) for international subscription under the public retail offering. The total number of shares available for sale in an open retail offering may be adjusted to a maximum of 50,000,000 shares, amounting to 10.0% of the total shares offered at the initial level of the public retail offering and in accordance with the callback mechanism set out in the prospectus published in Hong Kong. In addition, the Group is expected to award an over-allocation to international underwriters, which may require the Group to issue an additional total of 75,000,000 shares.

The offering price for this public retail offering (“Open Retail Offer Price”) will not be higher than HK$188.00 per share (“Maximum Public Retail Offer Price”). The price of the international offering portion of this offering (“International Offer”) may be set at a level higher than the maximum public retail offer price. After taking into account factors such as the closing price of U.S. depositary shares traded on the NYSE on the last trading day or before and the needs of investors in the roadshow process, the Group will determine the international offer price on 20 November 2019 Hong Kong time. The final public retail offer price will be the lower of the final international offer price and the highest public retail offer price (HK$188.00 per share). Shares will be traded in 100 shares per lot.

The Group intends to use the funds raised in the global offering to implement its strategy, which includes driving user growth and engagement, enabling companies to transform digital transformation and upgrade, and continuing innovation and investing in the long-term future.

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