Chinese e-commerce giants attain yet another feat as it generates up to $11bn in revenue in the world’s biggest share offering this year
Alibaba chief executive, Daniel Zhang announced to an audience minutes before the market opened in Hong Kong, that; “Alibaba has returned home to Hong Kong”, receiving a large round of applause.
Finally, after long years of traveling afar, the Chinese e-commerce giant and online payment solutions provider have returned to its root amidst the current political turbulence to raise a screaming $11.3 billion in the Hong Kong landmark listing. This is no doubt, the largest share sale in the city in nine years and a world record for a cross-border secondary share sale.
Five years ago, September 19, 2014, Alibaba made its IPO (initial public offering) in New York, where it raised $25billion and shattered records as the world’s largest initial public offering in history. Cheers erupted on the floors of the NYSE (New York stock exchange) and simultaneously at Alibaba’s headquarter in Hangzhou.
On Tuesday, Alibaba’s shares opened 6.25per cent higher at HK$187 ($23.90) at the Hong Kong Stock exchange, with the group raising HK$88bn ($11.3bn). The city’s benchmark HSI (Hang Seng index) gained 0.4%. The stock closed 6.7per cent higher at HK$187.60.
The $11.3bn equity raising is the biggest this year, placing Alibaba far ahead of the American ride-hailing company – Uber, who raised $8bn in New York earlier this year.
The funds raised from the Hong Kong listing will help Alibaba, Asia’s biggest company by market value and the world’s seventh-largest, invest more in a wider range of online services.
The technology group is constantly making headways with massive sales turnovers. In Q3 2019 it recorded a 40% sales increase in comparison to last year. The public listing, however, connotes a vote of confidence by Beijing in Hong Kong’s future as a financial center, in spite of the prevailing crisis within the state.