Alibaba Enters the Hong Kong Stock Exchange
Hong Kong is still plunged into the political crisis. It is against this backdrop that Alibaba is launching a giant stock market operation on Friday, November 15th in the former British colony. It will however be less impressive than the IPO on Wall Street.
The Chinese online trading giant hopes to reap 13.8 billion US dollars, well below the record of 25 billion raised on its entry on Wall Street. Also below expectations. In May, media reported $ 20 billion.
Finally Alibaba is less ambitious, despite a net profit tripled in the last quarter.
But the political turmoil may have deterred the group from risking an oversized operation. That said, his CEO was optimistic. “We continue to believe that the future of Hong Kong remains resplendent, and we hope to contribute to its future,” he wrote to investors.
In any case, this introduction is good news for Chinese leaders, who are encouraging tech giants to be listed closer to Beijing.
To be more attractive, the Hong Kong Stock Exchange has changed its rules. It now allows a company to be listed on two different places. This allows Alibaba to appear on a spot that the group had dismissed “with regret” during its first IPO in New York in 2014.