Alibaba's Hong Kong listing

Context:

Alibaba is set to raise up to $12.9bn in its secondary listing in Hong Kong on November 26.

Analysis:

Since the amendment to the Hong Kong listing rules last year, pundits have been eagerly waiting for this listing. Alibaba’s success, with a record-breaking $38bn worth of sales on ‘singles day’, have led to much anticipation and industry-wide interest in this listing. The share sale was multiple times oversubscribed by investors and in response the company has increased the allocation of shares to match this demand.

For Alibaba, the decision to list on the Hong Kong Stock Exchange enables it to access the Stock Connect Programme, enabling shares to be traded in China to attract both mainland investors and overseas.

Looking Forward:

For Hong Kong, the timing couldn’t be better. Among months of political uncertainty which have crippled its economy, Alibaba’s listing provides a much-needed injection of business confidence in the city, and is a message of support from Beijing – propelling Hong Kong to the top spot globally in terms of fundraising from first-time share sales, overtaking NASDAQ and the NYSE.

Source: Financial Times