Chinese e-commerce giant Alibaba Group is on track to raise upto USD 12.9 billion in a record-shattering listing in Hong Kong.
Alibaba still holds the record for the largest initial public offering after raising USD 25 billion through its New York stock market debut in 2014.
The Company plans to use the proceeds from the Global Offering for the implementation of its strategies to drive user growth and engagement, empower businesses to facilitate digital transformation, and continue to innovate and invest for the long term
The sale will be viewed as a boost to Hong Kong after five months of violent anti-government protests and just weeks after it was confirmed that the territory had plunged into recession. Hong Kong’s economic activity was down more than 3% in the three months to September as a result of a downturn in exports and a collapse in consumer and tourist spending, The Guardian reported.
The gross proceeds to the Company from the Global Offering, before deducting underwriting fees and the offering expenses, are expected to be approximately HKD 88,000 million. In addition, the Company has granted the international underwriters an over-allotment option, exercisable from November 20, 2019 until 30 days thereafter, to require the Company to issue up to an additional 75,000,000 new Shares at the Offer Price.
China International Capital Corporation Hong Kong Securities Limited and Credit Suisse (Hong Kong) Limited are the joint sponsors and joint global coordinators for the Global Offering. Citigroup Global Markets Asia Limited, JP Morgan Securities (Asia Pacific) Limited and Morgan Stanley Asia Limited are also acting as joint global coordinators.