Alibaba Group on Wednesday announced a price of HK$176 a share for its new global offering, which comprises an international offering and a Hong Kong public offering, and set a date of Nov. 26 for the shares’ listing on The Stock Exchange of Hong Kong Ltd.
The listing date is subject to approval from the SEHK, Alibaba said. The price for the global offering of 500,000,000 shares was set by taking into consideration the closing price of Alibaba’s American Depositary Shares on the New York Stock Exchange on Nov. 19, the latest trading day before pricing, among other factors, the company said.
Given the ratio of eight shares per NYSE-listed ADS, the offer price translates to approximately US$180 per ADS, Alibaba said.
The gross proceeds from the global offering, before deducting underwriting fees and the offering expenses, are expected to be approximately HK$88 billion. In addition, Alibaba has granted the international underwriters an over-allotment option, exercisable from Nov. 20 until 30 days thereafter, to require the company to issue up to an additional 75,000,000 new shares at the offer price.
In a release, Alibaba said it would use the proceeds to fund “its strategies to drive user growth and engagement, empowering businesses to facilitate digital transformation and continuing to innovate and invest for the long term.”
China International Capital Corp. Hong Kong Securities Ltd. and Credit Suisse (Hong Kong) Ltd. 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.
Alibaba first announced the global offering last Friday, saying shares would trade on the SEHK under the stock code “9988.” The Hong Kong listing will allow more of Alibaba’s users and stakeholders in its digital economy across Asia to invest in and participate in the fruits of its growth, while the company can expand its overall investor base and tap into substantial new capital pools in Asia, Alibaba said.
Read our full report on the upcoming listing here.
Read Executive Chairman and CEO Daniel Zhang’s letter to investors here.