HONG KONG, Japan — Chinese e-commerce giant Alibaba raised $12.9 billion in its listing on the Hong Kong stock market — with the Global Offering of 500,000,000 ordinary shares (the “Shares”) which comprises an international offering and a Hong Kong public offering.
The final offer price for both the international offering and the Hong Kong public offering (the “Offer Price”) was set at HK$176 per Share. Based on the ratio of eight Shares per NYSE-listed American depository share (“ADS”), the Offer Price translates to approximately US$180 per ADS.
The Company set the Offer Price by taking into consideration, among other factors, the closing price of the ADSs on November 19, 2019 (the latest trading day before pricing). Subject to approval from The Stock Exchange of Hong Kong Limited (the “SEHK”), the Shares are expected to begin trading on the Main Board of the SEHK on November 26, 2019 under the stock code “9988.”
The gross proceeds to the Company from the Global Offering, before deducting underwriting fees and the offering expenses, are expected to be approximately HK$88,000 million. In addition, the Company has granted the international underwriters an over-allotment option, exercisable from November 20, 2019 until 30 days thereafter, to require the Company to issue up to an additional 75,000,000 new Shares at the Offer Price.
The Company plans to use the proceeds from the Global Offering for the implementation of its strategies to drive user growth and engagement, empower businesses to facilitate digital transformation, and continue to innovate and invest for the long term.
China International Capital Corporation Hong Kong Securities Limited and Credit Suisse (Hong Kong) Limited (in alphabetical order) are the joint sponsors and joint global coordinators for the Global Offering. Citigroup Global Markets Asia Limited, J.P. Morgan Securities (Asia Pacific) Limited and Morgan Stanley Asia Limited are also acting as joint global coordinators.