Horn of plenty

14 November 2019 By Alec Macfarlane

China’s e-commerce titan is poised to raise some $12 bln in Hong Kong, five years after it chose New York for its mega-IPO. Others may hope to follow, but Alibaba is an unusual case given its size, brand and performance. Any hiccups could ensure it is a truly unique beast.

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Chinese e-commerce company Alibaba on Nov. 13 formally initiated the process of raising about $11.7 billion in a secondary share listing in Hong Kong, based on the current price of its New York-listed American depositary receipts. If an allotment to underwriters known as a green-shoe is exercised, the amount raised would be $13.4 billion.

The company intends to use the proceeds to invest in its delivery, travel and online video services, according to the 661-page draft prospectus for what looks set to be the world’s biggest cross-border secondary listing.

The stock is due to start trading in Hong Kong on Nov. 26, according to a term sheet seen by Breakingviews.

Alibaba’s U.S.-listed shares closed down 2.4%, at $182.48, on Nov. 13.

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