The largest e-commerce company of China, Alibaba group Holding Ltd., recently estimated its retail share. The company priced nearly $12.5 million retail portion from Hong Kong markets share sale.
While the investors in Hong Kong market are struggling hard to survive the recession after recent pro-democracy protests, Alibaba has appealed them for joining the mega share sale. What makes this first share sale so expensive is the cost of its individual share—HK $188—which is appealing the investors to participate the sales as “8” is known as auspicious according to Chinese numerology. The company will later estimate its remaining shares worth $500 million. By Nov. 20, the company will be estimating its remaining international offering.
All these moves by Alibaba clearly signal that it aims to grab a position in the list of world’s largest stock sales ever. It also aims to achieve topmost rank in Hong Kong market by having biggest share sales after 2010. It is expected to become official Asian company from Chinese e-commerce campaign by late November.
According to Chinese officials, the sale is necessary for Hong Kong market as it will help to encourage the wracked financial status of city. Many of the leading businesses have flocked overseas in recent months when city was facing pro-democratic protests. In this scenario, Alibaba’s reentrance with this mega sale is considered as a promising victory for the market.
As per the appealing letter issued to the investors by Daniel Zhang—CEO, Alibaba—the company believes that the moves are quiet beneficial for brightening the future of Hong Kong. If company acquires the listing in Hong Kong, more of its users and investors across Asia will be encouraged to invest and support Alibaba digital economy.
“The listing in Hong Kong has been a dream for Jack Ma—cofounder, Alibaba. As the new CEO, Zhang looks toward it as a proud achievement. He wills to expand the company into various adjacent markets such as cloud computing, logistics and entertainment.