HONG KONG (Reuters) – Alibaba ‘ s (BABA).(N) to order the book for $13.4 billion in Hong Kong, the sale of the shares have already been addressed “multiple times,” sources with direct knowledge of the matter said on Friday, as the e-commerce group in the kick-off of the campaign for the second listing in the city is in the grip of the idea.
The Chinese e-commerce giant, plans to list shares in Hong Kong, on 26 November, where it hopes to raise up to $13.4 billion, and it is the process of marketing the deal to investors all over the world.
The sources said the investors had been told that the “quality of high”, and that “there is still a very, very strong feedback” about the deal.
An Alibaba spokesman declined to comment.
The market price of the shares to the institutional shareholders shall be made on the 20th of November, a prospectus filed to the Hong Kong Stock Exchange shows. Retail investors will pay no more than $HK188 per share.
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.
Earlier on Friday, the Alibaba Group’s Chairman, Daniel, Zhang, made no mention of the unrest in Hong Kong, in a letter to the company of a 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 will remain clear,” Zhang wrote.
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.
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
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 and Jane Merriman