Alibaba’s newly released prospectus for its planned Nov. 26 listing in Hong Kong contains a hopeful missive from its CEO and chairman Daniel Zhang.
“When Alibaba Group went public (in New York) in 2014, we missed out on Hong Kong with regret,” Alibaba CEO and Chairman Daniel Zhang said in the prospectus, adding that the company wants to contribute to Hong Kong’s development and believes in the former British colony’s “bright” future.
Alibaba also said the listing will allow the company to “expand (its) overall investor base” and “tap into substantial new capital pools in Asia.”
The Chinese e-commerce giant plans to offer 500 million ordinary shares, including 12.5 million for retail investors at no more than HK$188 ($24.01), the prospectus says. The final share price will not be available until next Wednesday.
Calculating from the maximum possible share price, Alibaba could raise around $13 billion from the listing if a greenshoe option of 75 million extra shares is exercised.
In July, New York-listed Alibaba decided to make the value of its American depositary shares equivalent to eight ordinary shares. Industry insiders say the comparatively affordable share price is a bid by Alibaba to attract more regional investors. A recently launched link between the Hong Kong Stock Exchange and bourses in Shanghai and Shenzhen allows buyers on the Chinese mainland greater access to Hong Kong-listed shares.
The company’s Hong Kong stock will list under the ticker 9988.
Alibaba’s New York share price closed fractionally up 0.18% at $182.80 on Thursday. It remains the most valuable overseas-listed Chinese internet company by market cap.
This article previously did not specify which shares were available to retail investors.