Alibaba is in talks with financial advisors to raise $20 billion via a second listing on the Hong Kong Stock Exchange.
According to reports, Alibaba is now working with financial advisers on the planned offering and the listing in Hong Kong may happen by the second half of 2019. However, perhaps in response to losing the initial USA 25 Billion Alibaba listing, the SEHK has recently changed its policy to allow dual share class stocks.
The giant ecommerce group is trying to boost its liquidity and to diversify its sources of funding, insiders told Bloomberg. Alibaba declined to comment on the matter. The listing would be the world's biggest follow-on share sale in seven years and would come after its record-breaking float in 2014, when it raised $25 billion.
The message about a second listing comes as the trade tensions between China and the U.S. continue to flare up.
Ma with 17 others founded Alibaba Group with 60,000 US dollars in 1999.
On April 24 past year, HKEX approved the biggest change to its initial public offering rules in two decades, by allowing technology firms that have shares with different voting rights to go public in Hong Kong. This is according to a Bloomberg report.
As a result, the market value has grown to around $400 billion and the Alibaba stock is also up 13 percent in 2019.
While e-commerce may be the company's primary business, Alibaba has now morphed into one of the biggest investors in technology in China and are planning to invest aggressively in the industry in the years to come.
Rival Tencent, which is listed in Hong Kong, is trading at 26 times its expected earnings compared with Alibaba's 22 times in NY, according to Refinitiv data. The city is also home to a forthcoming new technology board, but that venue is mainly targeted at smaller homegrown companies.
In 2007, Alibaba.com, a B2B website of Alibaba Group, had its debut in Hong Kong. Under new rules for secondary listings introduced a year ago, the company can apply for an exemption to standard restrictions in Hong Kong that bar governance models allowing certain key executives to nominate the board.