Alibaba sets final offer price ahead of £8.7bn listing set to revive Hong Kong’s financial sector


Alibaba announced its final offer price of HK$176 (£17.39) per share ahead of its landmark listing on the Stock Exchange of Hong Kong (SEHK) next week, set to be the biggest since 2010.

The Chinese ecommerce giant will officially list on November 26, subject to approval by the SEHK, and is set to raise a whopping HK$88 billion (£8.69 billion).

This deal is will propel Hong Kong’s financial hub, which has been thrown into chaos amid months of violent political protests, back to the top spot in terms of fundraising from first-time share sales.

READ MORE: Alibaba to close books early on share offer thanks to sizzling demand

Currently the SEHK has seen companies raise $22.6 billion (£17.46 billion) from new offerings, but Alibaba’s listing is set to push this to $33.8 billion (£26.12 billion) for the year, ahead of the NASDAQ’s $33.5 billion (£25.88 billion) and the New York Stock Exchange’s $31 billion (£23.95 billion).

Alibaba is issuing 500 million new ordinary shares plus an extra 75 million “greenshoe” options, allowing underwriting banks to offer more shares than the original amount set.

Retail investors will be offered 12.5 million shares, though Alibaba will have the option to raise this to 50 million shares.

This will also see Alibaba pay its investment banking syndicate up to $32.3 million (£25 million) for leading the listing.

Its two co-sponsors China International Capital Corp and Credit Suisse were employed to head the deal, joined by Citi Group, JP Morgan and Morgan Stanley as global co-ordinators alongside HSBC and Industrial and Commerce Bank of China as junior book runners.

The listing will be seen as a major boon for Hong Kong, providing proof for investors that it remains a viable fundraising venue despite the chaos seen on its streets.

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