Reportedly, Alibaba Group Holdings Ltd. estimated the retail portion for its Hong Kong share sale on Friday. For now, Alibaba is issuing an appeal to individual investors in a city in the throes of recession after months of violent pro-democracy strikes. It is the first time in a decade; Hong Kong has plunged into recession. A report from the government has confirmed the news which is weighed down by elevating anti-government strikes and the mounting trade war between the U.S. and China. The economy has dived by 3.2% during July-September as that of the previous quarter. It is the second quarter of contraction, meeting the technical definition of a recession.
The Chinese e-commerce giant is having a market cap of 12.5 million shares available to individual investors at HK$188 per share. Notably, it is the most auspicious number in Chinese culture, which has made it the most expensive first-time share sale in Hong Kong. The retail giant said it might price the remaining of its 500 million-share offering above that maximum amount. The company said the listing in Hong Kong would permit more of the company’s shareholders and users in the Alibaba digital economy across Asia. It will boost the investment rate and participation in the growth of Alibaba.
Although Alibaba aims to utilize the proceeds from the offering for the implementation of its policies for boosting user engagement and growth, even more, the company aims to empower business for facilitating digital transformation and continuing to innovate and invest for the long term. Even more, the Chinese retail giant has decided to use a fully electronic application process for the public retail offering. It seems like, the company aims to avoid printed prospectus or application forms. So it is going to be a fully electronic application process that is reliable with the way in which Alibaba’s digital economy participants and customers will conduct their business deals with each other, including Alibaba.
Kevin has worked as a business executive in an insurance firm before joining Janmorgan Media as the major business correspondent. After joining here, he has helped craft not only some of the insightful articles but also regular articles that don’t compromise perspective. If not checking out business publications or news, you can see her listening to music.