Alibaba postponed a Hong Kong listing

The biggest e-commerce company of China, Alibaba Group was supposed to be listed in Hong Kong but as a result of the ongoing political unrest in the city, it has decided to delay its plan to issue a secondary offering.

Going by the ticker name NYSE: BABA, the Hong Kong listing postponed by Alibaba is up to $15 Billion. The company decided to postpone the said listing during a board meeting which took place prior to the latest quarterly earnings release last week. As reported by Reuters, the Hong Kong listing was set to take place during August.

According to two people who spoke to Reuters, the continuous political situation in the Asian financial hub made the giant in the e-commerce industry to make the decision to delay the Hong Kong deal. Alibaba could be launching the deal in early October and expect to raise $10-$15 billion.

According to Reuters, a source stated that, “It would be very unwise to launch the deal now or anytime soon,” the first person said. “It would certainly annoy Beijing by offering Hong Kong such a big gift given what’s going on in the city”. When asked about the ongoing situation in Hong Kong and its impact on the company, Alibaba CEO Charles Li stated, “I am confident that companies like that ultimately will find a home here, because this is home and I think they will come. I don’t know when though”.

The share price of Alibaba was closed at $177.21 on August 21, 2019.


(Reference: Investing.com, CNBC)
(Image source: Reuters)