Alibaba to raise $20 billion in 2nd public listing
Alibaba is considering launching a second public listing, hoping to raise tens of billions of dollars allowing it to continue to invest in technology.
Sources familiar with the matter informed Reuters that the Chinese ecommerce giant was hoping to raise as much as $20 billion through a second listing on the Hong Kong stock exchange, which would mark the biggest follow-on share sale in nearly seven years.
In 2014 Alibaba broke records with its initial public offering (IPO) on the New York Stock Exchange, which saw it raise $25 billion.
The anonymous sources said the listing could come as early as the second half of this year, and is likely a reaction to both growing tensions between the US and China, alongside slowing growth in its home market.
Since its IPO Alibaba has nearly doubled in size and now boasts a market value of around $400 billion.
Analysts has pointed out that although the retailer is not in desperate need of the cash, the listing would allow it to continue to pursue the development of expensive new technologies.
This comes just days after Alibaba applied for 262 blockchain patents, potentially allowing it to integrate its blockchain technology into its intellectual property system of global enterprises and brands.
According to a report by Intellectual Property Centre of China Information and Communication, Alibaba has pencilled in full implementation by September, after which the technology will be expanded to digital copyright protection, including visual content.
Earlier this month it also announced that it will now open up its platform to sellers from across the globe for the first time, allowing merchants from Russia, Turkey, Italy and Spain to register and sell their products on the platform, with plans to roll the service out to more countries in the near future.