Alibaba online retail business skyrocketed on Tuesday as it decided to consider a Hong Kong listing, a step the firm described as a vote of confidence in the embattled city of Hong Kong.
The stretched trading day pulled on to a glitzy start with the company’s chief executive officer Daniel Zhang joined on stage at a stock exchange occasion by other big names like city Financial Secretary Paul Chan and former Hong Kong chief executive Tung Chee-hwa.
Not long following the rang of the gong, Alibaba which has in different occasion been rated Asia’s most valuable company pulled through with almost eight percent, a near perfect start following a blockbuster initial public offering that raised nothing less than $11 billion.
“On the occasion of (Alibaba’s) 20th anniversary, we have ushered in an important milestone, which is to come home, come back to Hong Kong for listing,” a statement by Zhang which attracted clapping of hands.
The news would strengthen Hong Kong’s epileptic economy, which has been wracked by months of violent protests by citizen who demands a better living standard among other things and the China-US trade war.
Alibaba listed at HK$176, lower than an HK$188 indicative ceiling which was initially announced, although, it in a short while hit a high of HK$189.50 in mid-morning business.
With a total of 500 million shares offered to potential investors, Alibaba raised HK$88 billion ($11 billion) in the IPO, which is the highest since AIA garnered $20.5 billion in 2010. Then in the event that it chooses to use an over-allotment option to sell a further 75 million shares, it could possibly bring in HK$101.2 billion ($12.9 billion).
Source: AFP, SurgeZirc UK