Alibaba shareholders have approved a 1-to-8 stock split
Jul 16, 2019 (China Knowledge) - Alibaba Group Holding's shareholders have approved a 1-to-8 split of its US-listed stock. This e-commerce company is reportedly considering a secondary listing of its shares in Hong Kong and would raise USD 20 billion in the offering.
These changes followed the company's annual general meeting on Monday. Executives reported that the share split would not result in a gain, loss, or realization of taxable income to shareholders under US tax law. Voting rights of shareholders will remain the same.
Share split would give Alibaba greater flexibility for future capital-raising, including issuing new shares, according to a US securities filing late on Monday. Additionally, the split would increase the number of shares available for issuance at a lower per-share price.
Alibaba has been listed on the New York Stock Exchange since its initial public offering in 2014. With the reforms to Hong Kong's listing rules, companies that are already listed in New York or London can file confidentially for a secondary listing in Hong Kong, such as Alibaba. This would attract more Chinese tech companies to list in Hong Kong, which would help it compete with New York, London and Shanghai’s new technology innovation board for IPOs.
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