Alibaba shares skyrocket after Hong Kong listing success
Alibaba’s shares have jumped more than six per cent today after it launched this year’s largest public listing on Hong Kong’s stock exchange.
The ecommerce giant successfully raised around $11.3 billon (£8.8 billion) in its secondary public listing “despite the difficulties and challenges in Hong Kong.”
Its 500 million shares, which were listed at HK$176 (£17.39) each, were heavily oversubscribed on both institutional and retail tranches.
Shares opened at 6.25 per cent higher this morning at HK$187 (£18.60), before rising to a high of HK189.50 (£18.85) and finishing at 6.7 per cent higher at £187.60 (£18.66).
This marks a significant boon for Hong Kong as a financial hub, propelling it back to the top spot in terms of fundraising from first-time share sales, above both the New York Stock Exchange and NASDAQ.
During six months of violent protests and increasing political tensions in the city, Alibaba had been was forced to delay the listing earlier this year.
However, despite confidence surrounding the city’s financial sector wavering amid the chaos on the streets, chief executive of Hong Kong’s stock exchange operator Charles Li hailed Alibaba’s decision to “come home”.
Alibaba’s new chief executive Daniel Zhang added: “When Alibaba Group went public in 2014 , we missed out on Hong Kong with regret. Hong Kong is one of the world’s most important financial centers.
“Over the last few years, there have been many encouraging reforms in Hong Kong’s capital market. During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright.
“We hope we can contribute, in our small way, and participate in the future of Hong Kong.”