Alibaba is working with financial advisers on a USD 20 billion secondary listing in Hong Kong, Bloomberg reported, citing unnamed sources with knowledge of the matter. The company may file a listing application confidentially in Hong Kong as early as the second half of 2019 to create new funding channels and enhance its liquidity.
The e-commerce giant raised USD 8.25 billion when it went public in New York in 2014, after failing to float shares via the Hong Kong Stock Exchange due to its dual-class share structure. As its name suggests, the scheme involves two types of shares with different voting rights and dividend payments in the same company.
In April 2018, the Hong Kong bourse changed its regulations, allowing companies with the dual-class share structure to float shares in the city. The shift was a move to lure tech firms to the Hong Kong Stock Exchange. Xiaomi and Meituan were the first two companies to go public in Hong Kong under this scheme.
Alibaba declined to comment when contacted by KrASIA on Tuesday.
Last year, Hong Kong Exchanges and Clearing chief executive officer Charles Li Xiaojia said he welcomed US-listed new economy companies seeking a secondary listing in Hong Kong, including Alibaba, Baidu, and JD.com.
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