Alibaba’s stock price rose 7.7% on the first day of listing on the Hong Kong Stock Exchange. Immediately after the market opened, the stock price rose from the listed price of HK$176 to $189.50. HK$176 is 2.9% cheaper than the closing price of the New York Stock Exchange on November 26th.
The US Alibaba Depository is equivalent to 8 shares of Hong Kong shares on the New York Stock Exchange. The company has issued 500 million new shares of common stock for the home, but if the option to allocate an additional 75 million shares is implemented, it will be able to raise a larger amount.
Alibaba first listed on the New York Stock Exchange in 2014 and raised $25 billion, the largest public offering ever. Alibaba was first considering an IPO in Hong Kong, but did not allow dual-class shares in Hong Kong at the time. The issuance structure that Alibaba often used is to allow class holders to have greater voting rights than common stock holders and to allow companies to continue controlling after listing.
Last year, the Hong Kong Stock Exchange changed its rules to recognize dual-class stocks, and accordingly, Xiaomi and Meituan also made their debut in the Hong Kong market. In a statement, Alibaba CEO Daniel Zhang said in a statement that the vigorous innovation and change in Hong Kong’s capital market enabled Alibaba to realize the opportunity it lost five years ago. “If conditions permit, it has realized its promise of returning to Hong Kong. said.
The listing in Hong Kong will facilitate the sale of Alibaba stock by Chinese investors. In fact, this is not the first time Alibaba has appeared on the Hong Kong stock market. In 2007, Alibaba.com, a B2B e-commerce platform, was listed, and in 2012, it was unlisted again. The listing in Hong Kong took place shortly after several months of violent protests for democratization in Hong Kong. Even during the protests, the stock exchange was operating stably, and on the day before listing, the Hong Kong parliament had a majority of 452 seats changed from pro-Chinese to democratic. The protesters demanded a high degree of transparency from the authorities and the police, and the election results could be said to have sent a clear signal from Hong Kong public opinion to Minister Carrie Ram. Related information can be found here .