Alibaba Breaks 2019 IPO Record With $11.2 Billion Hong Kong Listing
Alibaba raises $11.2 billion in a record-breaking secondary listing on the Hong Kong Stock Exchange, marking a triumphant return five years after a dispute delayed its initial debut there.
Chinese tech giant Alibaba breaks the 2019 IPO record by raising $11.2 billion in a secondary listing on the Hong Kong Stock Exchange. This massive offering surpasses Uber's previous record of $8.1 billion and could reach $13 billion if underwriters exercise their greenshoe options. The successful debut takes place despite the city facing an economic recession and ongoing political unrest.
Alibaba's stock jumps 6.6% on its first day of trading, easily outperforming rival Tencent Holdings which drops 0.9%. Hong Kong Stock Exchange CEO Charles Li calls the event a milestone, describing it as a family member finally coming home. The company originally wanted to list in Hong Kong in 2014 but chose New York after a dispute over board structure.
Executive chairman Daniel Zhang credits continuous innovations in the Hong Kong capital market for making this homecoming possible. The triumphant listing provides a major vote of confidence for the city during a turbulent period marked by pro-democracy protests and a declining Hang Seng Index. Portfolio managers praise Alibaba for listing in Hong Kong at a time when many investors lose confidence in the market.