Alibaba could potentially raise billions of dollars again
Chinese e-commerce giant Alibaba (BABA) has confidentially filed paperwork for its Hong Kong listing, according to a report by Bloomberg. Companies usually take two or three months to launch their share offerings after submitting paperwork to exchanges.
The company’s listing in Hong Kong would be its second after it raised a record $25 billion through its New York listing in 2014. The company recovered in the fourth quarter of fiscal 2019 with revenue growing 51% YoY after the company saw two consecutive quarters of deceleration due to the slowing Chinese economy.
Alibaba could use the fresh funds to invest in more unicorns
The filing comes at a time of strained relationships between the US and China. A Hong Kong listing could help Alibaba to strengthen ties with China, the report said. Alibaba’s listing comes after Hong Kong has had a number of high-profile tech IPOs including Xiaomi and Meituan Dianping.
The Hang Seng made it easier last year for Chinese companies that have already listed in the US to list in Hong Kong as well. Alibaba could potentially raise billions of dollars from its second listing, which could help it expand and invest in more startups. Chinese giants Alibaba and Tencent have taken a page out of SoftBank’s book and have invested in a number of startups and unicorns in Asia, particularly in India, a hot Internet market.