China’s largest e-commerce company Alibaba successfully listed on the Hong Kong stock market on the 26th. The New York Times reported on the same day that Alibaba has raised $11.2 billion. Despite internal unrest in Hong Kong, where anti-China protests have continued for six months.
Alibaba’s listing is the second of its kind since it first went public on the New York Stock Exchange in 2014 and attracted $25 billion. The listing in NYSE is the largest ever until now.
On the Hong Kong stock market, Alibaba’s shares rose more than 6 percent, surpassing the HKD 189.50 at one point. Alibaba began trading at HKD 187, HKD 11 higher than its initial public offering at HKD 176.
Alibaba issued 500 million common shares and 75 million over-allocation options.
Alibaba’s listing in Hong Kong stock market is the largest since the listing of AIA, a multinational life insurer, in 2010.
Looking at the global IPO market this year, it is expected to be next to Saudi Arabia’s state-run oil company Aramco. Aramco is preparing to go public in US stock market by December. And it attracts many interests as to whether the public offering will exceed $25 billion.
Alibaba ‘Comes Home’ through Hong Kong IPO
Previously, Alibaba said it would delay the IPO this summer when Hong Kong shows the violent protests.
The protests have intensified, but investment sentiment has improved, the New York Times said. Small protesters devoured the neighborhood, but much of the rest of the city got unaffected. Despite traffic congestion and other problems, international companies are reportedly working without major disruptions.
The Hong Kong exchange eased some regulations to attract more companies. A case in point is the introduction of differential voting rights last year, which guarantee the majority shareholder more voting rights than the stake he owns.
CNN reported that the listing to Hong Kong’s stock market means that one of China’s largest technology companies has returned home.
Alibaba said earlier in the day that it has “come home” at its official Weibo account.
