HONG KONG (Reuters) – Alibaba Group’s President Daniel Zhang said: “Hong Kong “in the future, it is clear that if the e-commerce giant kicked off a retail promotion campaign for the second listing in the city is in the grip of increasingly violent protests and the country was in recession.
FILE PHOTO: the logo of Alibaba Group is seen during Alibaba Group’s 11.11 Singles Day a global shopping festival, at the registered office of the company, in Hangzhou, Zhejiang province, China, on November 11, 2019. (REUTERS photo/Aly Song, File/Photo
In a first for the Asian financial hub, on Alibaba, said that the list is fully computerized and paper-and to reflect on social and environmental standards, confirming an earlier Reuters story.
Investment bankers familiar with the listing, however, said the move avoided a potential publicity nightmare for investors, are lining up at the banks to place stock orders, and while the protests rage around them.
Four thousand people have been arrested in Hong Kong in June, and the territory’s economy has sunk into recession for the first time in a decade, when the anti-government demonstrations, disrupting business and leisure guests to scare them off.
Zhang made no mention of the unrest in the chairman’s letter included in the company’s supplementary prospectus.
“Over the past few years, there have been many encouraging reforms in Hong Kong, the capital from the market. In this age of constant change, we continue to believe that the future of Hong Kong remains in the light,” he wrote.
Hangzhou-based Alibaba plans to raise up to $13.4 billion in a Hong Kong listing, and the shares are due to begin trading on Nov. 26. The market price of the shares will be capped at HK$188 each.
The sale of the shares is set to be Hong Kong’s biggest in more than eight years, and it comes as Beijing seeks to support the semi-autonomous region’s tycoons and entrepreneurs, to maintain a sense of business-as-usual in the face of more than five months of unrest.
Alibaba originally considered to be a Hong Kong initial public OFFERING in 2013, but ultimately chose New York after failing to get approval from Hong Kong regulators, the unusual structure of the board of directors.
The institutional price will be finalized on Dec. 20, after a book build, which is on the way for global investors.
The retail component of the 12.5 million shares being offered, which is 2.5% of the total deal, but it can be increased up to a maximum of 50 million, or 10% of the total transaction.
Alibaba will also have the option to carry out a so-called over-allotment option to add an additional 75 million shares in the deal.
Report by Scott Murdoch; Editing by Stephen Coates