HONG KONG (Reuters) – Alibaba ‘s planned $13.4 billion sale of the shares to be issued will be Hong Kong’s first paper-free for a stock market listing, a source with knowledge of the matter said, in a break with the long tradition of investors to place stock orders in the branches.
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
Companies to conduct initial public offering in Hong Kong, have been placed in the re-in the banks, many of which would stay open late or on the weekend, and investors will have to fill out paper forms in order to make their stock orders.
The decision by Alibaba to fully automate all of your retail plan is part of the deal comes as Hong Kong is in the grip of violent civil unrest, which has closed stores in the financial district on Thursday, led the government to close schools.
Alibaba is not going to print a paper copy of the 661-page prospectus, which it filed to the Hong Kong Stock Exchange on Monday, said the source, who was not authorised to speak to media and so declined to be identified.
Investment bankers familiar with the Alibaba listing, ” said the logistics of it on the part of investors queuing outside the banks, as the protests broke out in the area, it would have been difficult.
Alibaba is not to be expected that it will carry out an advertising campaign in the list, but it will tell you the potential for private shareholders, especially the older ones, that is, the automation will not shut them out from participation.
An Alibaba spokesman declined to comment.
The Hangzhou-based e-commerce giant is inviting retail investors to take up shares on Friday, with an initial allocation of € 12.5 million shares, or 2.5% of the new shares to be issued to a term sheet seen by Reuters shows.
HANG SENG SINKS
Alibaba’s prospectus, the company plans to issue 500 million shares and could raise up to $13.4 billion, after the so-called over-allotment option is exercised.
The list comes as the Hang Seng index fell to a five-week low on Thursday, driven down by a deterioration in sentiment was in Hong Kong.
Alibaba had been planning for a paperless deal, where it is considered to be listed in Hong Kong at the end of the year. The list was made after the anti-government protests started to unfold, and the city has been gripped by a worsening of the violence.
The decision to go paperless was made in line with the Alibaba considers itself a leading-edge e-commerce and digital platform, the source said.
An Alibaba report on the environmental, social and corporate governance (ESG) last year, said it was “aware of the environmental impact of paper and plastic packaging, as well as the environmental impact of transport systems and logistics”.
Report by Scott Murdoch; Editing by Neil Fullick, Mark Potter and Alexander Smith