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Alibaba plans Hong Kong listing following recording-breaking sales day

Chinese e-commerce company Alibaba is planning a secondary listing on the Hong Kong stock exchange that could raise US$13 billion for the company, according to reports. The listing is expected to take place before December.

Singles Day sold US$1 billion in the first minute. (Photo: guardian.com)

Just Monday, the company saw its Singles Day, the largest retail event in the world, sell a record-breaking US$38.3 billion in merchandise, a 26 per cent increase over last year.

Alibaba listed on the New York Stock Exchange in 2014 and will now issue half a billion new ordinary shares and 75 million “greenshoe” options, according to reports. The greenshoe option allows additional stocks to be sold should there be greater demand.

Alibaba made more than US$38.3 billion in sales on Singles Day. 
(Photo: Getty Images)

While no official comment has been made by Alibaba, a listing by the company would be the biggest of the year, placing it ahead of Uber which raised US$8 billion in May this year.

A record-breaking US$25 billion was raised by the company in its initial listing on the New York Stock Exchange, which will continue to be its primary listing.

Alibaba listed on the New York Stock Exchange in 2014. (Photo: britannica.com)

An impressive US$1 billion worth of merchandise was sold within the first hour of Singles day, climbing to US$12.01 billion in the first hour of Singles Day. The much-anticipated shopping event has increasingly become more popular and lucrative than Black Friday and Cyber Monday sale days.

Alibaba is valued at US$486 billion and faces growing competition from rivals JD.com and Pinduoduo.