On Tuesday, Chinese e-commerce titan Alibaba’s shares saw a strong debut in Hong Kong after the pricing of its shares at around $22.5 (176 Hong Kong dollars), respectively, becoming the largest listing of the world so far this year. Hong Kong-listed Alibaba’s shares surged over six percent nearly the open at 09:30 a.m. HK/SIN, before hitting an initial intraday of 189.50 HK dollars single share. The stock ended its primary trading day around 6.6 percent above its listing price. Tec giant of China issued five-hundred million new regular shares in addition to seventy-five million “greenshoe” options. If the option of overallotment exercised, guaranteeing banks will able to sell additional shares than the original amount set.
On Tuesday, one analyst told CNBC that the Hong Kong listing of Alibaba so far becomes pretty successful. CEO and founder of T.H. Capital, Tian Hou, said that given time … they have believed that the stock price will rise more. Furthermore, she added, at present, Alibaba’s HK-listed stock price is quite attractive, pointing to the position of Alibaba as an enabler for services like the transaction of physical goods as well as storage of information, as a catalyst for the business. Hou said, if they put another ten-year time frame, another five-six times appreciation becomes achievable. One investor says ahead of the highly awaited debut, the decision of Alibaba to list in the HK Stock Exchange is too positive.
Alibaba’s Secondary Listing
A portfolio manager at Ellerston Capital, Mary Manning, said on Monday that it was strange that the biggest Chinese company listed entirely in the United States. In September 2014, Alibaba went public and chose the NY Stock Exchange for its debut. The secondary listing of Alibaba in Hong Kong became the largest offering of the world so far in 2019 – greater than around eight billion dollars raised by Uber in May 2019. Still, it forecast to beaten to the title by an anticipated listing of Saudi Aramco in Riyadh in December. Manning said that he congratulates Alibaba for making a move to list in HK at a time when several people lost their confidence … in what’s going on in HK as a market.
The offering Alibaba is a massive boost for the market of Hong Kong, which sees business slow due to the continuing protest of pro-democracy, which escalated in recent weeks. Chairman and CEO of Alibaba, Daniel Zhang, said in a letter to investors in mid-November that when Alibaba Group went public in 2014, they missed out on HK with regret. Hong Kong is one of the most important financial centers in the world. Zhang said during the last few years, and there have several inspiring reforms in the capital market of Hong Kong.
Over this time of ongoing change, they still believed that Hong Kong’s future remains bright. They hope they can pay in their small way and contribute to Hong Kong’s future. Manning said she had a great position in American depository receipts of shares of Alibaba listed in the United States. But added that her strategy was to move the whole position to HK over time.