Shares of Chinese e-commerce giant Alibaba saw a potential debut in Hong Kong on Tuesday morning after pricing its shares at 176 Hong Kong dollars, which is approximately $22.5 individually, becoming the most extensive listing of the world so far. Hong Kong-listed shares of Alibaba waved more than 6% around the open at 9:30 a.m. HK/SIN, before impacting an early intraday high of 189.50 Hong Kong dollars per share. It last dealt around 7% higher than its listing price, as of 9:46 a.m. HK/SIN. The Chinese tech giant produced 500 million new ordinary shares plus 75 million greenshoe options. If the over settlement option is supervised, underwriting banks will be capable of selling more shares than the original amount set. Ahead of the highly expected debut, one investor said that Alibaba’s decision to list in the Hong Kong Stock Exchange is very veritable.
Mary Manning, who is the portfolio manager at Ellerston Capital, said CNB’s Squawk Box on Monday, that it was always bizarre that the most significant Chinese Company was listed exclusively in the United States. Alibaba went patent in September 2014 and selected the New York Stock Exchange for its debut. Alibaba’s subject listing in Hong Kong became the most extensive offering in the world so far in 2019, which is larger than the $8 billion moved by Uber in May. Still, it is hoped to be smitten to the title by Saudi Aramco’s expected listing in Riyadh in December. The Company’s formerly said those retail shares would be priced at around 188 Hong Kong dollars.
Alibaba’s overture is a significant boost for the Hong Kong market, which has seen business slow among the continuing pro-democracy protests that have escalated in recent weeks. Daniel Zhang, the CEO, and chairman of Alibaba stated that when Alibaba Group went patent in 2014, they missed out on Hong Kong with plaint as Hong Kong is one of the world’s most important economic centers. He also added that hopefully, they could contribute, in their small way, and partake in the future of Hong Kong.
