Alibaba files for Hong Kong listing that could raise $20bn

Ben StevensCompanies News

Alibaba has filed for a $20 billion (£15.75 billion) listing in Hong Kong marking the largest global follow-on share release in the last seven years.

The Chinese ecommerce giant, which holds the record for the largest initial public offering (IPO) with a $25 billion (£19.69 billion) float in 2014, is planning to use the funds for further investment in technology.

According to Bloomberg, the deal is being led by investment banks Credit Suisse and China International Capital Corp, and could be competed as early as the third quarter of 2019.

This comes amid an intensifying trade war between the US and China, much of which is focused on the development of technology.

READ MORE: Alibaba to raise $20 billion in 2nd public listing

Though its first record-breaking IPO took place on the New York Stock Exchange, its latest filing in Hong Kong will be seen as a victory for the stock-focused city.

Since its IPO, Alibaba’s market value has nearly doubled to $423 billion, and it is now the most valuable company in the Asia-Pacific region.

Analysts have 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 weeks 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.

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Ben StevensCompanies News

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