Asia: Alibaba: Stock Exchange in Hong Kong – Economy


The Chinese e-commerce giant Ali Baba Friday launched a colossal stock market operation in Hong Kong. He hopes to raise more than 13 billion francs, when the former British colony sinks into political violence.

The group founded by the eccentric billionaire Jack Ma, who wrote the story in 2014 by achieving the biggest introduction in stock Exchange of all time on Wall Street, has chosen the Chinese place to recover funds that must help in its global development.

"For a young company that is only 20 years old, it's a new beginning," said group CEO Daniel Zhang in a letter to investors. He also wished to send a sign of confidence to Hong Kong, after five months of increasingly violent demonstrations against the growing influence of the communist regime on the autonomous territory.

"In this time of change, we continue to believe that the future of Hong Kong remains resplendent. We hope to contribute, in our way, to the future of Hong Kong, "he said.

Less than estimate

Alibaba dismissed "with regret" a quote in Hong Kong when he chose New York in 2014, said Daniel Zhang. Alibaba had then collected $ 25 billion, an absolute world record for an IPO.

This time, Alibaba offers up to 575 million shares to investors at a maximum unit price of 188 Hong Kong dollars, for a total of 13.8 billion US dollars or 13.65 billion francs.

This amount is lower than the latest estimates: the Hong Kong daily "South China Morning Post", which belongs to Alibaba, announced Wednesday that the group planned to raise up to 15 billion US dollars, which would have made it the largest IPO in the former British colony since 2010.

Media even mentioned the end of May the sum of 20 billion US dollars, but political unrest that began soon after could dissuade the Chinese group to risk an oversized operation.

Closer to Beijing

Chinese leaders seek to encourage tech giants to be listed closer to Beijing, after the loss of Alibaba, but also the internet giant Baidu, to the benefit of Wall Street.

The Hong Kong Stock Exchange has changed its rules in recent years to allow a company to be listed in two different places.

Hong Kong Executive Carrie Lam also urged Alibaba's founder to sell shares in Hong Kong.

2 billion consumers in 2036

The behemoth founded in 1999 took full advantage of the phenomenal consumer appetite for online commerce – a national sport in China – and has become one of the largest market capitalization companies in the world.

Its various online commerce platforms bring together in China even 785 million monthly users on mobile phones. Over the next five years, the group aims to have one billion consumers in China (out of a total population of 1.4 billion). By 2036, the goal is to total 2 billion consumers globally.

Alibaba waited Monday for its traditional "Feast of Singles", the biggest day of global sales, to proceed with its IPO: the giant, headquartered in Hangzhou (east), made record sales on this occasion nearly € 35 billion in 24 hours, a turnover up 26% over last year. (Ps / nxp)

Created: 15.11.2019, 03:17

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