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Alibaba Is Exploring a Massive Boost to Its War Chest

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Alibaba raised $25 billion through its first listing

Alibaba (BABA) is considering a second listing of its shares in Hong Kong, according to a Bloomberg report citing people familiar with the matter. The company is considering raising as much as $20 billion through the Hong Kong listing, the report stated. The process of listing Alibaba shares in Hong Kong could begin before the end of this year. Alibaba went public in 2014, raising $25 billion in an IPO that saw its shares listed on the NYSE.

Alibaba finished the first quarter with $28.8 billion in its cash reserve. Its raising $20 billion through a second listing would provide a huge boost to its bank account and would grant it greater financial flexibility to pursue its dreams.

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Alibaba looks beyond commerce

Alibaba is keen to diversify outside its e-commerce roots. Cloud computing, financial technology, and autonomous driving are some of the company’s areas of interest. Alibaba already dominates China’s cloud market and is one of the top five cloud companies in the world. It finished the March quarter holding a ~5.0% share of the global cloud market, ranking fifth behind Amazon (AMZN) with a 35% share, Microsoft (MSFT) with a 15% share, Google (GOOGL) with a 7.0% share, and IBM (IBM) with a ~6.5% share, according to Synergy Research data.

Last year, Alibaba said it was testing self-driving vehicles, according to a report from the South China Morning Post. Self-driving is an area of interest to Alibaba’s domestic tech peers Baidu (BIDU) and Tencent (TCEHY) as well. Baidu, for instance, has partnered with Ford and Volvo to test self-driving cars in China.

At the moment, Alibaba derives the vast majority of its revenue from its commerce operations. Alibaba’s revenue rose 51% year-over-year to $13.9 billion in the first quarter.

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