Alibaba Hong Kong Secondary Listing, Financing Exceeds Expectations
According to the Hong Kong Stock Exchange, Alibaba’s stock offering is the largest issuance in Hong Kong since 2010. The funds raised by Alibaba will be added to the company’s cash reserves, which currently amount to $ 43 billion.
The successful listing is a huge plus to Hong Kong’s reputation as an international financial centre, and this is when Hong Kong needs to be boosted. Protests have broken out at lunchtime in Hong Kong’s financial district on several occasions in recent weeks, causing tear gas and riot police to stand by everywhere. Some clashes between police and bankers have taken place outside the Hong Kong Stock Exchange.
Earlier this summer, Alibaba said it would delay plans to sell shares in Hong Kong as the protests turned into violence. During the summer months, the stock market was hit hard, losing almost all of its earnings this year.
Nonetheless, Alibaba’s funds raised after the resumption of the stock sale plan exceeded executives’ expectations. Alibaba operates an online marketplace where large and small companies can sell to Chinese consumers. Despite protests and signs of a slowing economy in mainland China, investors are still attracted by this growing market. The company issued additional shares last week to meet strong investor demand.