China’s e-commerce giant Alibaba is guiding investors for a HK$176/share pricing ahead of its November 26 listing on the Hong Kong stock exchange, sources familiar with the matter told Asia Times. This is within the HK$188 price cap announced by the company and at a discount to the closing price of its New York-listed American Depositary Share. Each ADS is equivalent of 8 HK-listed shares.
The secondary listing involving the sale of 500 million shares would raise US$12.9 billion, including the over-allotment ahead of its November 26 listing. The shares will trade under the ticker 9988, inspired by auspicious numbers in Chinese culture with 9 representing long and 8 representing prosperous.
At this price the shares would be priced at a 2.9% discount to Alibaba’s closing price of US$185.25 in New York last night, after factoring in the exchange rate, transaction cost and stamp duties. China International Capital Corporation (CICC) and Credit Suisse are the sponsors for the secondary offering in Hong Kong.
Details of the final pricing are expected at 5pm Hong Kong time (0900 GMT).