Alibaba to delay Hong Kong USD 20 bln listing, current chaos is main attribute
Aug 19, 2019 (China Knowledge) - Alibaba (BABA), the world's largest retailer and e-commerce platform, is considering to postpone the company's listing on the Hong Kong Stock Exchange (HKEx). Previously, the company filed to go public in June without revealing a firm date and the offering is expected to reach USD 20 bln.
The Hong Kong listing will enable Alibaba to access diverse funding channels as pensions and other investors from Mainland China are allowed to buy shares of the company, increasing its liquidity.
Alibaba, boasting the promising Chinese market of 1.4 billion population, has overtaken all US retailers including Walmart (WMT), Amazon (AMZN) and eBay (EBAY) combined in terms of online sales and profits since 2015. It is one of the top 10 most valuable and biggest companies in the world. The firm became the second Asian company to break the USD 500 bln valuation mark in 2018.
This is the second time that the company has delayed its listing in Hong Kong. Back in 2013, the e-commerce giant tried to go public in Hong Kong but failed due to the company’s dual-class corporate structure was inconsistent with HKEx’s rules. Alibaba turned to the New York Stock Exchange (NYSE) and made its debut on Sept. 19, 2014. The IPO in New York raised USD 25 bln, marking the world’s highest in history.
Last year, HKEx made the biggest change in its IPO rules in two decades as it has allowed technology companies that have shares with different voting rights to list in Hong Kong. The policy offers Alibaba the opportunity to go public on the market. However, considering the chaos in Hong Kong, Alibaba has to put off the IPO plan.
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