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QINGDAO TODAY
在线翻译:
szdaily -> Markets -> 
Alibaba seeks to make its HK listing a success
    2019-06-03  08:53    Shenzhen Daily

AS Alibaba Group Holding Ltd. jumps in on a hot year for tech listings, it’s hoping to avoid repeating the high-profile flops of Uber Technologies and Lyft.

The Chinese e-commerce giant has two things going for it that could help as it preps a potential second listing in Hong Kong: a profitable business and a history of returns for stock investors.

“Alibaba is profitable and has a great cash flow — its growth has been stellar,” said Hong Hao, chief strategist for Bocom International Holdings Co. “People wouldn’t perceive this kind of deal negatively.”

The company is considering seeking about US$20 billion from a first-time share sale in Hong Kong, people with knowledge of the matter said.

While Alibaba readies its pitch, most major tech listings globally over the past year are trading below their offer prices, with the average deal losing initial public offering investors 13 percent.

Alibaba’s track record in the stock markets could its planned Hong Kong listing a success.

Since Alibaba started trading in New York in 2014, its shares have more than doubled. That compares with a 41 percent gain in the benchmark S&P 500 index over the same period.

Coming to Hong Kong for a second listing will also allow Alibaba to tap the city’s legions of mom-and-pop investors, who are reserved a slice of every main board listing.

History shows how they can boost a deal. When Alibaba’s business-to-business marketplace listed in Hong Kong in 2007, retail punters placed orders for 257 times the amount of stock they were initially offered. That allowed Alibaba to increase the portion of shares set aside for them to a quarter of the entire deal, up from 15 percent initially.

The frenzy sent shares of Alibaba.com Ltd. soaring, ending their first day up 193 percent. While Alibaba took the unit private before later pursuing a group listing in New York, it may be hoping for a similar response this time around. (SD-Agencies)

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