With an official stock exchange blessing in the rear view mirror, it’s now off to the races for Alibaba as it charges towards what’s almost certain to be the biggest IPO in Hong Kong this year.
The e-commerce giant got the nod from Hong Kong’s stock market operator to proceed with its plan on Tuesday, which would see it make a second major listing in the former British colony to complement its current main listing in New York.
Such a move would not only raise billions of dollars more for Alibaba, but could also make its stock easily available to investors on the Chinese mainland for the first time through a link connecting the Hong Kong Stock Exchange to bourses in Shanghai and Shenzhen.
Following Tuesday’s listing approval, Alibaba revealed more details on its plans in a term sheet seen by Caixin. The document shows that Alibaba is aiming to raise $11.7 billion from the offering of 500 million ordinary shares, which could rise as high as $13.4 billion if demand is strong and the underwriters exercise an overallotment option to sell up to 75 million more shares.
The vast majority of shares being sold — 97.5% to be exact — would go to international investors, while the remainder would be available for local buyers in Hong Kong.
In terms of timing, things will move pretty quickly. The company plans to wrap up its roadshow by next Wednesday, and price the listing before U.S. markets open that day. The actual trading debut under the 9988 ticker symbol would come on Nov. 26 if all goes according to schedule.
Contact reporter Yang Ge (firstname.lastname@example.org; twitter: @youngchinabiz https://twitter.com/youngchinabiz)Related: Alibaba Gets Stock Exchange Approval for Hong Kong IPO