Chinese e-commerce juggernaut Alibaba will raise as much as $12.9 billion in its Hong Kong secondary listing, valuing its shares at a 2.8% discount to their last closing price in New York, two sources with direct knowledge of the matter stated.
The corporate has given steering to prospective institutional traders that its shares will price at HK$176 each, the sources said.
The contract will raise HK$88 billion ($11.3 billion) earlier than a so-known as ‘greenshoe’ over-allotment possibility is exercised, which might take the total to $12.9 billion, in response to the two people, who requested not to be named since the data has yet to be made public.
Alibaba had previously indicated it might increase up to $13.4 billion if the greenshoe possibility is exercised.
In Hong Kong greenback terms, the pricing is symbolic since 8 implies prosperity in Chinese culture.
The price for the retail part of the deal would be finalized in Hong Kong Wednesday, and sources said institutional buyers had been due to be told at the same time how much stock they will be allotted.
Alibaba shares closed in New York City Tuesday at $185.25, which was 0.35% higher for the session.
In the secondary listing, 8 Hong Kong shares will be equal to one of Alibaba’s New York-listed American Depositary Shares, in response to records filed with the U.S. regulators.
China International Capital Corporation (CICC) and Credit Suisse have been the sponsors for the Hong Kong agreement, which is the world’s biggest cross-border secondary itemizing thus far, according to Dealogic.
The shares will probably be fully interchangeable between the Hong Kong and New York Exchanges.