HONG KONG (Reuters) – Chinese e-commerce giant Alibaba Group Holding Ltd., has filed confidentially for a Hong Kong listing, which will take place as soon as the third quarter of this year, a person with direct knowledge of the matter told Reuters.
FILE PHOTO: A sign of the Alibaba Group is seen at the registered office of the company, in Hangzhou, Zhejiang province, China, July 20, 2018. (REUTERS photo/Aly Song, File/Photo
The list can be as much as $20 billion, sources said last month, less than the record $25 billion float in New York city about five years ago.
At that time, the company’s founder, Jack Ma expressed the wish to see a list of all the in Hong Kong, but the tech company’s management structure, and in the encounter with the hotel rules and regulations. The show has changed since its stock exchange listing rules, in particular, to the attraction of China is the world’s tech start-ups.
The latest deal would be the largest follow-on share sale globally during the last seven years, and will give Alibaba funds to invest in the technology, which is a priority for China, and if economic growth flags, and a trade fight with the United States has been strengthened.
Alibaba declined to comment on the deal when contacted by Reuters. A person with knowledge of the matter, was not authorised to speak to media and so declined to be identified. News of the filing was first reported by the international monetary Fund.
Investment banks China International Capital Corp Ltd Credit Suisse Group AG is leading the deal. The banks did not immediately respond to Reuters ‘ requests for comment. None of the other banks to have a formal contract as of yet.
The filing comes in the midst of growing political unrest in Hong Kong this week, raising concerns about the potential impact on the financial markets and businesses.
Thousands of protesters have taken to the streets in the southern Chinese territory this week, with a scheduled delivery arrangement with the mainland of China.
Logistics real estate developer ESA Cayman Ltd., on Thursday, pulled up to what would be the largest Hong Kong listing so far this year, as a result of weak demand, two people with direct knowledge of the matter said.
A person with direct knowledge of the matter said the deal was likely to be $10 billion to $15 billion.
At $20 billion, the deal would be the sixth-biggest following the sale of the shares will ever be, Refinitiv of the data turned out to be.
Since its US listing, Alibaba has nearly doubled in size to become the biggest-listed Chinese company with a market value of more than $400 billion.
Listing in Hong Kong would provide mainland Chinese investors their first direct access to one of the biggest success stories, either through the stock connect trading link between Hong Kong, Shanghai, and Shenzhen.
Reporting by Julie Zhu in Hong Kong; Additional reporting by Mekhla Raina in Bengaluru; Writing by Alex Hughes; Editing by Saumyadeb Chakrabarty and Christopher Cushing