Alibaba to pioneer paperless listing in break with Hong Kong norm

Reuters Finance 1 month ago

HONG KONG (Reuters) - Alibaba’s planned $13.4 billion share sale will be Hong Kong’s first paperless stock market listing, a source with knowledge of the matter said, breaking with a long-held tradition of investors placing stock orders in bank branches.

Companies carrying out initial public offerings in Hong Kong have traditionally placed prospectuses in banks, which would often stay open late or over the weekend, and investors would fill out paper forms to place their stock orders.

The decision by Alibaba to fully automate the retail subscription component of its deal comes as Hong Kong is gripped by violent civil unrest which has shut shops in the financial district and on Thursday led the government to close schools.

Alibaba does not plan to print a paper copy of its 661-page prospectus, which it lodged with the Hong Kong Stock Exchange on Wednesday, said the source, who was not authorised to speak to the media and so declined to be named.

Investment bankers familiar with the Alibaba listing said the logistics of having investors queuing in or outside banks while protests unfolded nearby would have been difficult.

Alibaba is not expected to carry out a advertising campaign for the listing, but will tell potential retail shareholders, particularly the elderly, that the automation process will not lock them out of participating.

An Alibaba spokeswoman declined to comment.

The Hangzhou-based ecommerce giant will invite retail investors to subscribe for shares on Friday, with an initial allotment for them of 12.5 million shares, or 2.5% of the new stock to be issued, a term sheet seen by Reuters shows.

HANG SENG SINKS

Alibaba’s prospectus showed the company plans to issue 500 million new shares and could raise up to $13.4 billion after the so-called over-allotment option is exercised.

The listing comes as Hang Seng index fell to a five-week low on Thursday, driven down by worsening sentiment in Hong Kong.

Alibaba had planned a paperless deal when it considered a listing in Hong Kong over the summer. The listing was put on hold after the anti-government protests started to unfold and the city has since been gripped by worsening violence.

The decision to go paperless was in line with Alibaba considering itself a leading e-commerce and digital platform, the source said.

An Alibaba report on environmental, social and corporate governance (ESG) last year said it was “mindful of the environmental effect of paper and plastic packaging as well as the carbon footprint of transport systems in logistics”.


Source link
Read also:
One America News Network › Finance › 1 month ago
By Scott Murdoch HONG KONG (Reuters) - Alibaba Group will carry out Hong Kong’s first paper-less stock market listing with its $13.4 billion share sale, according to a source with knowledge of the
One America News Network › Finance › 1 month ago
By Noah Sin and Scott Murdoch HONG KONG (Reuters) - Alibaba Group's $13.4 billion Hong Kong listing is shrinking cash levels in the protest-wracked financial hub, with short-term borrowing
One America News Network › Finance › 1 month ago
By Julie Zhu and Joshua Franklin HONG KONG/NEW YORK (Reuters) - Alibaba Group Holding Ltd is eyeing a listing in Hong Kong as early as November to raise up to $15 billion, after political
One America News Network › Finance › 3 weeks ago
By Scott Murdoch HONG KONG (Reuters) - Alibaba will close its order books early to prospective institutional investors as part of its $13.4 billion secondary listing in Hong Kong, according
Business Insider › Finance › 1 month ago
Multiple news reports say Alibaba got the go-ahead to go public for the second time with a Hong Kong listing later this month and could raise as much as $15 billion. Reuters said Alibaba would start the process of going public as soon as Thursday...
CNBC › Technology › 3 weeks ago
Alibaba will set the final offer price for its shares by Nov. 20 Hong Kong time. Shares of Alibaba will begin trading on Nov. 26.
Reuters › Finance › 2 weeks ago
Alibaba Group's Hong Kong shares were trading 7.7% higher at HK$189.50 in their debut, after marking the city's biggest share sale in nine years. Alibaba has raised at least $11.3 billion from the secondary listing and that amount could climb to as...
Reuters › Finance › 1 month ago
Alibaba Group Holding Ltd is eyeing a listing in Hong Kong as early as November to raise up to $15 billion, after political unrest in the Asian financial hub put the move on ice earlier this year, people familiar with the matter said on Wednesday.
The New York Times › Finance › 1 month ago
Alibaba Group Holding Ltd is eyeing a listing in Hong Kong as early as November to raise up to $15 billion (£11.64 billion), after political unrest put the move on ice earlier this year, people familiar with the matter said on Wednesday.
The Wall Street Journal › 1 month ago
Alibaba is aiming to raise $10 billion to $15 billion in a second listing in Hong Kong as soon as this month, according to people familiar with the matter, reviving the planned offering even as the city’s political climate remains unstable.
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR