BABA - Alibaba Group Holding Limited
| Previous Close | 182.80 |
| Open | 184.00 |
| Bid | 185.18 x 1100 |
| Ask | 185.50 x 1200 |
| Day's Range | 183.71 - 185.60 |
| 52 Week Range | 129.77 - 195.72 |
| Volume | 10,698,466 |
| Avg. Volume | 13,310,284 |
| Market Cap | 484.287B |
| Beta (3Y Monthly) | 2.26 |
| PE Ratio (TTM) | 53.04 |
| EPS (TTM) | 3.50 |
| Earnings Date | Jan 28, 2020 - Feb 3, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 223.44 |
- Insider Monkey
5 Mega Cap Stocks Hedge Funds Are Crazy About
One of the best tools for ordinary investors who are on the hunt for new ideas is 13F filings. Hedge funds hire some of the smartest Ivy League graduates as their analysts, have access to industry insiders whom they "consult" with, unconventional data sources that cost tens of thousands of dollars, years of experience and […]
- Barrons.com
What Does Alibaba’s Hong Kong Listing Mean for U.S. Shareholders? 6 Things to Know
The Chinese e-commerce giant (BABA) (ticker: BABA) has been trading on the New York Stock Exchange since it raised $25 billion in a 2014 initial public offering. The price of the American depositary shares has soared 173% from $68 at the IPO to $185.49 as of Friday’s close. Now, the company wants to offer another 500 million new ordinary shares in a listing through the Stock Exchange of Hong Kong.
- Bloomberg
Alibaba's Hong Kong Share Sale Is Feeling Lucky
(Bloomberg Opinion) -- Hong Kong is doing everything it can to ensure Alibaba Group Holding Ltd.'s listing is a roaring success. That's turning the $12 billion mega-sale into a hot item — if you can get your hands on the shares.Alibaba will initially offer only 2.5% of the offering to individual investors, a quarter of the allocation specified in Hong Kong’s listing rules and half the 5% level typically allowed for sales valued at more than HK$10 billion ($1.3 billion). The retail portion may be increased to as much as 10% depending on the level of demand, though that’s still well below the 50% that the listing rules require for the most heavily subscribed offers.The effect of squeezing down the retail offering may be to increase the perceived rarity value of Alibaba shares, magnifying the buzz around what may be Hong Kong’s biggest share sale since 2010. For example, an allocation that is barely covered at 10% would be four times subscribed at 2.5% with the same level of demand.Hong Kong Exchanges & Clearing Ltd. has done its utmost to accommodate Alibaba, introducing rules that allow dual-class shares after resisting change for a decade — and losing the company’s $25 billion initial public offering to New York in 2014. The word “waiver” appears 80 times in Alibaba’s prospectus.With Hong Kong’s economy and markets rocked by protests, there’s much riding on a successful sale. After the listing, HKEX will be home to Asia’s two largest technology companies in Alibaba and Tencent Holdings Ltd. That could help the exchange attract more tech plays such as Southeast Asian ride-hailing giants Grab Holdings Inc. and Gojek.There are reasons to expect Alibaba’s Hong Kong stock to do well. Many mainland Chinese investors will get their first chance to buy shares of the country’s most valuable corporation, once Alibaba is included in the “stock connect” trading pipes that link Hong Kong with the Shanghai and Shenzhen exchanges. Capital controls prevent Chinese investors from easily accessing overseas stock markets, meaning that only those with money parked outside the mainland can trade Alibaba’s U.S. stock. And Chinese technology companies often attract higher valuations on local exchanges than overseas.Alibaba is at the forefront of China’s digital and consumer economies, with its Taobao and Tmall sites continuing to thrive as weakening growth prompts more people to seek bargains online. The company reported record sales for its Singles’ Day shopping festival on Nov. 11 and posted a 40% surge in September-quarter revenue. Its New York-traded stock had risen 33% this year as of Thursday’s close, and 54 of 55 analysts tracked by Bloomberg rate the stock a buy (the other is a hold).Institutions are sure to support the sale, encouraged by expectations of a wall of Chinese money joining them. Demand will come from Asian funds that have overlooked Alibaba previously because they want to trade in their own time zone. Hedge funds also sense opportunity. An expected price gap between Alibaba’s New York and Hong Kong shares is fueling a colossal arbitrage trade, Fox Hu and Carol Zhong of Bloomberg News reported Nov. 14. Alibaba will raise as much as $13.4 billion if an over-allotment option is exercised. The institutional offering will be priced on Nov. 20.In a possible fillip for retail demand, the offering will be Hong Kong’s first fully paperless listing, according to Reuters. Whether by accident or design, that means individuals won’t have to line up at banks or brokerages to obtain application forms — a potential deterrent given the unrest. Even the numbers associated with the listing are auspicious. Alibaba has capped the per-share price for individual investors at HK$188 apiece — double eight is particularly lucky in Chinese. And the company will trade under the stock code 9988, which sounds like “forever prosperous.” It looks like no one is leaving anything to chance. To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Investor's Business Daily
JD.com Earnings Easily Beat Views; Alibaba Rival Jumps, Then Reverses
JD.com stock jumped then retreated Friday as the China e-commerce company reported better-than-expected third-quarter results. Revenue climbed 29% to $18.9 billion. Earnings soared 142%.
- Investor's Business Daily
What You Need To Know About The Alibaba IPO In Hong Kong
Terms of the Alibaba IPO on the Hong Kong Stock Exchange were announced Friday. The offering could raise up to $13.8 billion, making it the largest IPO this year, trading later this month.
- Investor's Business Daily
Dow Jones Hits Highs As Disney, Applied Materials, RH, Datadog Soar; Walmart, Cisco Fall: Weekly Review
The major indexes hit fresh highs this week. Disney spiked on Disney+ users. RH got a Warren Buffett boost. Applied Materials, Datadog soared on earnings. Walmart and Cisco fell on results.
- Investor's Business Daily
Stock Market Rips Higher On Trade Optimism; These Chinese Stocks Make Big Moves
Stock market gains continued after White House economic adviser Larry Kudlow said the U.S. and China are "down to the short strokes" on a trade deal.
- Benzinga
Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
The latest round of 13F filings from institutional investors is out, revealing to the world the stocks that some of the richest and most successful investors have been buying and selling. Takeaways From ...
- TipRanks
These 3 ‘Strong Buy’ Giants Still Have Room for Growth, Say Analysts
Sometimes, the big guys get the press for a reason. The six largest publicly traded companies have a combined market cap of more than $5 trillion – roughly equivalent to the gross domestic product of the Japan, the world’s third-largest economy. In some respects, the stock market is little more than a performance reflection of its very largest members.A look at TipRanks’ Stock Screener quickly reveals the stocks we are talking about, and the names are no surprise. Apple and Microsoft are at the top, valued at over $1 trillion each. We’ll be looking at several of their peers –the news-makers in the tech industry that draw investors in. They’ve reached this peak for similar reasons: positive disruption of established markets, proven success generating revenues, enormous returns for investors. And even at their scale, Wall Street still sees room for them to grow. Let’s dive in.Amazon (AMZN)In the recent Q3 report, Amazon reported sharp earnings losses despite a modest gain in revenues. Total sales rose 24% to $70 billion, against a forecast of $68.8 billion, while EPS missed the estimates, coming in at $4.23 versus the $4.62 predicted. The EPS miss comes after Amazon has spent $1.6 billion over the past two quarters on expansions of the one-day delivery program. In a move that is sure to make investors a bit nervous, the company also announced that capital expenditures will increase in Q4, to $1.5 billion, due to warehouse and product line expansions.It’s a testament to Amazon’s underlying strength that management could post a loss due to high spending – and then announce plans for even higher spending. This is a company with a firm business model and plenty of revenue to cover the expansion plans. But more important, from an investor’s perspective, the capital expenditures are money well spent. Expanding and improving one-day delivery, expanding warehouses, and improving product lines will all positively impact the bottom line once they are fully implemented.So, even though AMZN shares have underperformed the markets in 2019, gaining 18% against the broader S&P’s 23% increase, the stock still shows the potential that has made Jeff Bezos the richest man alive.Setting out the bullish case clearly is Deutsche Bank’s Lloyd Walmsley, who writes, “We would be buyers of Amazon shares post disappointing 4Q guidance, which reflects the typical seasonal step-down in growth… While operating income guidance was meaningfully below consensus, and buyside expectations, we think the clear benefits of 1-day Prime visible in 3Q results give investors comfort the investment is worth it, particularly given the view that Amazon will eventually ring out efficiencies in its delivery and the AWS and advertising profit juggernauts continue along at healthy growth rates…” Walmsley’s $2,150 price target implies a healthy upside of 21% for AMZN. (To watch Walmsley's track record, click here)Doug Anmuth, 5-star analyst from JPMorgan, is also upbeat about Amazon’s future. Giving the stock a $2,200 price target, he says, “We believe Amazon’s flexibility in pushing first-party vs. third-party inventory and its Prime offering both serve as major advantages in its retail business, and its multi-year head start in the cloud has led to a ~60% US market share. Amazon is also starting to show more profit, with its high-growing AWS and Advertising revenue streams also its most profitable.” His price target indicates confidence in a 24% upside potential for Amazon.All in all, the e-commerce king is without question a Wall Street favorite, considering TipRanks analytics indicate AMZN as a Strong Buy. Out of 35 analysts polled in the last 3 months, all 35 are bullish on the stock. With a return potential of nearly 25%, the stock's consensus target price stands at $2,182.36. (See Amazon's price targets and analyst ratings on TipRanks).Alibaba (BABA)Shifting our gaze to China, we find Amazon’s major international competitor. Alibaba is China’s largest retail website, and while China’s government policy of restricting international internet access means that Western observers are less familiar with it, it’s important not to lose sight of some basic facts.BABA’s growth has been impressive. The stock’s 36% year-to-date gains are double those of Amazon, and BABA has gained 107% in the last three years. BABA reported fiscal Q2 2020 earnings earlier this month, and the $1.83 EPS clobbered the forecast of $1.55. Revenues, at $16.7 billion, showed a 40% gain from the year-ago quarter. The company’s Core Commerce segment was up 40% for the period; its smallest segment, Cloud Computing, gained a hefty 64%. Overall, BABA’s growth makes it a viable competitor for Amazon – but it’s important to remember that Amazon has overhead costs that Alibaba lacks.On a further positive point for Alibaba, the company hit record numbers on the November 11 Singles Day sales, the biggest annual online shopping event in China. The minute and eight seconds of the shopping day saw Alibaba pull in $1 billion, and the company hit $12 billion by the end of the first hour. Total sales for the day, $38 billion, were, for the third year in a row, a new record.UBS analyst Jerry Liu sees a happy future for Alibaba, which he describes in his recent report on the stock: “We believe the company can maintain high-30% revenue growth due to strong user engagement… with new drivers (live streaming, second hand goods, feed ads) potentially accelerating China Commerce revenue growth next year. We also believe… investors have gotten too negative on Alibaba relative to competitors.” Liu recommends buying BABA stock now, and his $210 price target implies a 14% upside. (To watch Liu's track record, click here)Writing from Deutsche Bank, analyst Eileen Deng describes the path forward for Alibaba: “Alibaba's Sep Q results featured a nice beat on revenue... We sensed a great effort moving towards a disciplined investment strategy... There will be more focus on user retention, cross-selling, and then reinvestment out of discretionary profit. By realizing stronger synergies, we become more confident for an EBITDA profit growth in the next few quarters.” Deng set a $223 price target, suggesting that BABA has room for 19% growth.Like Amazon, Wall Street’s analysts are unanimous on BABA. The Strong Buy consensus rating is based on 17 "buys" set in recent weeks, while the $229 average price target indicates a 24% upside from the current trading price of $185. (Find out how the Street’s average price target for Alibaba breaks down)Facebook (FB)Facebook’s reputational problems in the area of consumer data protection and privacy are well known, and founder Mark Zuckerberg’s attempts over the past two years to address the issue brought him several rounds of merciless mockery – ironically, on the very social media networks he had pioneered. Earlier this year, Facebook suffered an earnings hit when the company had to set aside $5 billion in cash to cover a record-setting FCC fine related to the problems with data privacy.But with a market cap of $555 billion, annual revenues exceeding $55 billion, and net income of $22 billion, Facebook had the resources to pay that fine, swallow the immediate loss, and move forward. Despite the mockery heaped on Zuckerberg, the company has made visible efforts to improve data security – although the company still faces difficulties relating to perceptions of political censorship. Zuckerberg has said that FB will simply allow anyone to post any political idea – but in today’s highly charged socio-political environment, it’s probably not possible for him to please everyone.Facebook’s shares have reacted well to the company’s efforts and reputation management and damage control. The tech giant suffered first and worst in the 2H18 downturn, losing 42% of its value before bottoming out in December. Since then, the stock has shown a solid recovery, climbing 55% from its lowest point. While it’s not back at peak values yet, and has shown high volatility since May, FB is up 44% year-to-date.A solid Q3 report underscored the company’s gains. Daily active users, a key metric, climbed to 1.62 billion – and yes, that’s billion; Facebook reaches 22% of the world’s population every day through its family of apps. Revenues and EPS, at $17.65 billion and $2.12 respectively, both beat the forecasts.Youssef Squali, 5-star analyst with SunTrust Robinson, lays it out in his recent report on FB shares: “We remain bullish on FB after another solid quarter, beating on all financial/ user metrics amidst intense regulatory/media scrutiny… We believe Facebook has become the foundation of the social web… Facebook is still in its early growth phase, in our view, and given its enormous reach and time spent statistics, coupled with relevance, targeting, and social context, we believe the company will capture a disproportionately high percentage of brand ad dollars over the next 2-3 years.” Squali’s price target of $250 implies an upside of 31%. (To watch Squali's track record, click here)Facebook’s Strong Buy consensus rating is not unanimous, but it is based on 27 "buy" ratings set in recent weeks. The 3 "holds" and 1 "sell" are reminders of the company’s recent problems, but don’t detract from optimistic the outlook. Shares are priced at $195, and the average price target of $235 is well above the July 2018 peak of $235. Overall, FB has a 21% upside potential. (Discover how the overall stock-price forcecast for Facebook breaks down here)
- Zacks
Singles' Day Bonanza a Prelude to Holiday Season: 5 Picks
After a successful Singles' Day, American retailers expect a smashing holiday season.
- Financial Times
Alibaba set to raise up to $13.4bn in Hong Kong secondary listing
Alibaba is set to raise up to $13.4bn in a secondary listing in Hong Kong In what would be the world’s biggest equity capital raising of the year so far. Final pricing on the deal is set to be confirmed on November 20, with shares listing in Hong Kong on November 26 under the ticker 9988, the term sheet said.
- Reuters
Alibaba gets strong demand for $13.4 billion Hong Kong listing: sources
Alibaba's order books for its $13.4 billion Hong Kong share sale have already been covered "multiple times," sources with direct knowledge of the matter said on Friday, as the ecommerce group kicked off its campaign for the secondary listing in the city gripped by protests. The Chinese e-commerce giant plans to list its shares in Hong Kong from November 26, where it is hoping to raise up to $13.4 billion, and it is marketing the deal to investors around the world. The sources said potential investors had been told that the "quality of demand is high" and that there "continues to be very strong feedback" about the deal.
- Reuters
Alibaba's $13.4 billion bookbuild covered multiple times: sources
Alibaba's $13.4 billion institutional bookbuild for its Hong Kong listing is already covered "multiple times," according to a message sent to investors and verified by sources with direct knowledge of the matter. The Chinese e-commerce giant plans to list its shares in Hong Kong from November 26 and is currently marketing the deal to investors around the world. Pricing of the stock for institutional shareholders will be set on November 20, a prospectus lodged with the Hong Kong Stock Exchange shows.
- Financial Times
Alibaba puts its faith in Hong Kong with mammoth secondary listing
Alibaba has given protest-racked Hong Kong a vote of confidence as it kicked off the world’s biggest capital raising of the year with an announcement that it would sell 500m shares to investors in a secondary offering. Daniel Zhang, Alibaba’s chief executive, said on Friday that “during this time of ongoing change, we continue to believe that the future of Hong Kong remains bright”, calling the city “one of the world’s most important finance centres”.
- Market Exclusive
Market Morning: Alibaba Goes Hong Kong, Uber Dump, Alzheimer’s Hope, Cannabis Collapse
Alibaba, Now May Not Be the Best Time to IPO in Hong Kong Alibaba (NYSE:BABA) is going public in Hong Kong with a $13.4 billion listing, and it’s putting extra stress on the Hong Kong banking system specifically at a time when the island is on the verge of exploding in cacophonous riots leading to […]The post Market Morning: Alibaba Goes Hong Kong, Uber Dump, Alzheimer's Hope, Cannabis Collapse appeared first on Market Exclusive.
- South China Morning Post
'Taobao Queen' leads the charge as Hong Kong fans of e-commerce platform get ready to spend big on Alibaba's secondary listing
Cherry Lai plans to spend a six-digit figure on Alibaba Group Holding shares when its retail share offering in Hong Kong opens for subscription on Friday."My experience and spending record at Taobao proves the e-commerce giant has a very bright future," she says. Known as the "Taobao Queen" among friends and family, Lai has over the past decade spent more than HK$4 million (US$510,903) on everything from toothbrushes to toys for her four dogs on the e-commerce platform operated by Hangzhou-based Alibaba.The company, which owns the South China Morning Post, has been listed in New York since 2014, hopes a secondary listing of up to US$13.86 billion worth of shares in Hong Kong will help it tap a loyal fan base " one that is crucially more familiar with its business " closer to home.Lai, among the hundreds of millions of Taobao and Tmall.com users who helped Alibaba post a record 268.4 billion yuan (US$38.4 billion) in a 24-hour spending spree known as Singles' Day on November 11, is the kind of customer the e-commerce giant wants to turn into a shareholder."I don't have any US stock trading account, so I never thought of buying Alibaba shares in the US," says Lai, who blogs as Taobao Queen on Facebook. "I'm so glad that it's listing in Hong Kong. Now, I can buy its shares.""I spend about HK$30,000 to HK$40,000 on Taobao every month. As I spend so much [on the platform], it is a good idea for me to become a shareholder of the company and [take part] in its business growth," she adds.Lai says she has invested in the past, mainly in second and third liners as she likes to speculate. She has lost some money and made some in the process. Since Alibaba is a solid company, she plans to take a long-term view. "I plan to hold on the shares for the long term. Besides its e-commerce platform, it also has other companies, which form a good ecosystem. More importantly, this is a company whose business I know very well."Some of Hong Kong's 600 stockbrokers have set aside at least HK$120 billion for customers who would want to borrow to finance their purchase of Alibaba shares.The company has said its listing price will not be higher than HK$188 per share, thus investors will only have to pay a minimum HK$18,800 for a lot of 100 shares to subscribe. The shares will start trading on November 26. Alibaba's total offering of 500 million shares, plus an upsize option of 75 million shares, will raise as much up as HK$108.1 billion based on HK$188 per share. That makes it the largest listing worldwide this year, and the biggest in Hong Kong since the insurer AIA's HK$159.08 billion deal in 2010. What does Alibaba's secondary listing mean for investors?Lai and other potential subscribers will not have to contend with the long queues that preceded some of the city's most sought-after IPOs, such as the HK$124.95 billion offer by Industrial and Commercial Bank of China in 2006. This time, there will be no printed prospectus or application forms.The entire subscription process will be fully conducted electronically, consistent with the way the company and its customers conduct their transactions, according to Alibaba's statement Friday. Investors will be able to read its prospectus, subscribe and pay for retail shares online."It is a good idea for Alibaba to have an electronic share offering, as the traffic in Hong Kong has been chaotic these past few days, and many banks have had to close early [because of the city's anti-government protests]," says Tom Chan Pak-lam, chairman of the Institute of Securities Dealers, an association of stockbrokers. "A majority of investors are already used to electronic share offerings." Banks, investors hoard cash for Alibaba's 'giant' listing, push up HiborThe protests, in their sixth month now, have not dented the city's appetite for the listing, Chan says. "Investors like to buy into a brand they are familiar with, and that is the advantage of Alibaba's listing in Hong Kong. Many brokerages have been approached by a lot of retail customers who are planning to buy the stock."Stephanie, another retail investor eyeing Alibaba stock, says many in her 13-member family plan to buy the shares. "My whole family is looking forward to Alibaba listing in Hong Kong," she says, declining to provide her surname. "I haven't bought any technology stocks, as I am very conservative. But I have shopped at Taobao and has used Alipay. This gives me confidence in the listing," she adds.Not everyone is rushing in, though. Polly Leung, who shops every year during the company's Singles' Day shopping gala, says she thinks the listing price may be too high."I would like to buy into the Hong Kong listing if there is a discount of about 10 per cent to [Alibaba's] US listing. But at HK$188, it is at a premium to its US stock closing in recent days. I think it is a bit expensive," she says.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- Reuters
Hong Kong's cash pool tightens as Alibaba primes for $13 billion listing
Alibaba Group's $13.4 billion Hong Kong listing is shrinking cash levels in the protest-wracked financial hub, with short-term borrowing costs shooting back towards a decade-high marked in July. Large IPOs and share sales typically hoover up cash in Hong Kong's relatively small banking system, albeit temporarily. "Timing wise, it's not good for the liquidity to get sucked out of the system as there's a bit of capital outflow happening due to the protests," said a Hong Kong-based senior banker at a European bank, who asked not to be identified.
- Reuters
Explainer: Why is Alibaba listing in Hong Kong?
Chinese e-commerce giant Alibaba is set to price its first share sale in Hong Kong next week, raising up to $13.4 billion in what will be the largest deal in the city since 2010 and the world's biggest ever cross-border secondary listing. WHY IS ALIBABA LISTING IN HONG KONG? Alibaba, which is due to start trading on Nov. 26 in Hong Kong, could also benefit from Chinese demand.
- Bloomberg
Alibaba Launches Mega Share Sale With $12 Billion Retail Tag
(Bloomberg) -- Alibaba Group Holding Ltd. priced the retail portion of its Hong Kong share sale Friday, issuing an appeal to individual investors in a city in the throes of recession after months of violent pro-democracy protests.The largest Chinese e-commerce company capped the 12.5 million shares available to individual investors at HK$188 apiece -- an auspicious number in Chinese culture -- making it the most expensive first-time share sale in Hong Kong. Alibaba said it may price the remainder of its 500 million-share offering above that ceiling, signaling that it aims to raise at least $12 billion in what would be one of the world’s largest sales of stock this year. The company will price the rest of its international offering by Nov. 20.Asia’s largest corporation is proceeding with what could be Hong Kong’s biggest share sale since 2010. Slated for late November, it’ll be the Chinese e-commerce juggernaut’s official Asian coming-out party -- half a decade after snubbing the financial hub for a record Wall Street debut. Alibaba’s return hands a much-needed victory to a city wracked by protests since the summer, and will please Chinese officials who’ve watched many of the country’s largest private corporations flock overseas for capital. If the deal goes through, Alibaba will challenge Tencent Holdings Ltd. for the title of the largest Hong Kong-listed corporation.“The listing in Hong Kong will allow more of the company’s users and stakeholders in the Alibaba digital economy across Asia to invest and participate in Alibaba’s growth,” the company said. “During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright,” Daniel Zhang, chief executive officer of Alibaba, said in a letter to investors.Read more: Alibaba Is Taking Orders for $11 Billion Hong Kong ListingListing closer to home has been a long-time dream of billionaire Alibaba co-founder Jack Ma’s. A successful Hong Kong share sale could help finance a costly war of subsidies with Meituan Dianping in food delivery and travel, and divert investor cash from rivals like Meituan and WeChat operator Tencent. It will also be a feather in the cap for Zhang, who took over as chairman from Ma in September. The former accountant is now spearheading the company’s expansion beyond Asia but also into adjacent markets from cloud computing to entertainment, logistics and physical retail.What Bloomberg Intelligence SaysAlibaba’s secondary listing in Hong Kong could lead to a shake up of the Hang Seng Index, the city’s main stock benchmark. The 50-member index is heavy on financial stocks, when comparing weights to other leading equity indexes in the world. Meanwhile, IT, industrials and consumer discretionary stocks are severely underrepresented.\- Steven Lam, analystClick here for the researchA marquee name like Alibaba’s could draw investors and boost trading liquidity for Hong Kong Exchanges & Clearing Ltd., which just incurred its biggest profit slump in more than three years. For Hong Kong, it’s bit of welcome news following half a year of often violent protests that have at times paralyzed the city and its service industry. Efforts to court Alibaba emanated from the very top, with Chief Executive Carrie Lam herself exhorting Ma to consider a listing in the city.Alibaba has considered a Hong Kong listing for a long time, Michael Yao, head of corporate finance at Alibaba, said on a call with investors this week. The deal size hasn’t changed as a result of the protests, he added.(Updates with details of price per share comparison in second paragraph)\--With assistance from Zhen Hao Toh.To contact the reporters on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Alistair Barr in San Francisco at abarr18@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
UPDATE 2-Alibaba gets strong demand for $13.4 bln Hong Kong listing - sources
Alibaba's order books for its $13.4 billion Hong Kong share sale have already been covered "multiple times," sources with direct knowledge of the matter said on Friday, as the ecommerce group kicked off its campaign for the secondary listing in the city gripped by protests. The Chinese e-commerce giant plans to list its shares in Hong Kong from November 26, where it is hoping to raise up to $13.4 billion, and it is marketing the deal to investors around the world. Pricing of the shares for institutional shareholders will be set on November 20, a prospectus lodged with the Hong Kong Stock Exchange shows.
- Barrons.com
Alibaba Is Moving Ahead With a Hong Kong Listing. It Plans to Sell 500 Million Shares.
Alibaba didn’t set a price for the new shares. Based on Thursday’s closing price of its American depositary shares, the company is estimated to raise between $11.4 billion to $14 billion.
Reuters VideosAlibaba gets strong demand for IPO - sources
On Monday (November 11) it notched sales of 38 billion dollars in its latest Singles' Day shopping fest. Now Alibaba looks certain to shift 13.4 billion dollars of shares in its upcoming IPO. Sources have told Reuters that order books for the sale have been covered many times over. The e-commerce giant plans to list in Hong Kong on November 26. It's currently marketing the deal to investors around the world. . Sources say an earlier attempt at an IPO was abandoned due to the city's political unrest. This time Alibaba looks certain to press ahead. Not coincidentally, perhaps, the offering will be fully automated and paperless. That avoids the potential publicity nightmare of investors queuing to submit applications as protests rage around them. The share sale will be Hong Kong's biggest this year. Pricing for the shares will be announced on November 20th.
