Courtesy-Indian online seller
In a less span of time Alibaba has become the market leader all over the world, founded in 1999 by Jack Ma and his 17 team members, the E-commerce giant service is available globally to serve and experience you with the all-new feel of online shopping but this is not only the limit, Alibaba is also serving in technology.
On Tuesday, CEO & Chairman Daniel Zhang confirmed with a media interaction and said that they had started trading on Hong Kong stock exchange although we know there is a war going with the US on the US-China trade war. Where the US authority is imposing a high tariff on our products and as a result the cost of our products is getting costlier. But apart from that, Alibaba took a bold and straight forward decision, five years earlier on the New York Stock exchange in a debut, the procedure was a record-breaking deal.
The trading has started on 26th November, and it is so far the world’s biggest listings of 2019. This clearly depicts the role of a technology giant in the process and would boost the Hong Kong Stock exchange as well.
CEO Daniel Zhang further said about the initial public offering in Hong Kong and we had a planned strategy on how to deal and continue with the strategy with the ongoing US-China trade war.
In their debut, Alibaba Group Hong Kong shares were trading 7.7% higher after considering the city’s biggest share sale in nine years. In the secondary listings, the company has also raised at least $11.3 billion, the amount can be raised up to $12.9 billion if only an over-allotment option is used or exercised.
“Thank you Hong Kong and thank you HKEX. Your transformation in the past few years has made it promising for us to realize what we missed five years ago,” Zhang said in a statement.
“The technology giant had hoped to list in Hong Kong market but eventually we chose New York for its record-breaking $25 billion initial public offerings in 2014. The structure of the governance which is unsuccessful to win the acceptance from Hong Kong regulators”, the CEO issued in a statement. As per the latest reports in the US, Alibaba is the fifth most-traded company in New York this year, averaging $2.6 billion per day.
The company sold its Hong Kong shares at HK$176 in New York last Tuesday, which was a 2.9% discount to the company’s closing price. Each American Depository Receipt denotes eight Hong Kong shares.
The advantage for Alibaba a twofold, it can mix its shareholders during the trade war between US and China and thus it can command a high price in small parts because investors are opposing and clamoring in Hong kong for positive amidst the protests, “Jasper Lawler of London Capital said in a statement.
The company said they want to use the proceeds from the share sale for strategies to expand its users, help businesses with “digital transformation, and continue to innovate and invest for the long term.”
Alibaba’s initial public offering was held in the U.S in 2014, due to regulatory limitations that prevented an IPO in Hong Kong. “With the ongoing change, we continue to believe that the future of Hong Kong remains bright and fruitful. We hope we can contribute, in our most possible way, and participate in the future of Hong Kong,” Zhang said.