Alibaba is closely linked to a public listing in Hong Kong, which could take place in the third quarter and raise up to $ 20 billion. The company remains silent about these rumors, but it has dropped an important clue after announcing its intention to split its shares.
The deposits uploaded today (but originally released on Friday) have announced a stock splitting proposal of one to eight.
Shareholders are invited to vote on the Offer prior to the Company's Annual General Meeting to be held on July 15th. The initiative has already been approved by Alibaba's board, which recommends that shareholders do the same.
The particularly interesting part of the file is where Alibaba explains the reasons for the division of the shares.
"The board of directors proposes the sub-division of shares in order to increase the flexibility of the company in its future activities in the capital markets. Among other reasons, the subdivision into shares from one to eight will increase the number of shares that can be issued at a lower price per share, and the Board of Directors believes that this will increase flexibility in the capital increase activities of the company. Company, in particular by the issue of securities. new shares ", says the deposit.
This would seem to pave the way for a second listing of the company, which was made public during a record IPO in the United States, which raised more than $ 20 billion in 2014.
Alibaba declined to comment further when we asked.
Reports released last week suggest that the Chinese online trading giant has already filed the first documents for listing, which would become the largest such fund on the Hong Kong stock exchange. The city has become a destination for IPOs in the Chinese technology sector since the rules of easing easing rules came into effect two years ago. Ironically, the lack of flexibility was cited as one of the main reasons why Alibaba chose the United States of America rather than Hong Kong for its listing in 2014.
Among the technology companies that have become public in Hong Kong are Razer, Xiaomi, China Literature of Tencent, and the free art application company Meitu. Despite the hype, some did not take into account Hong Kong's suitability for technology companies, which are often not profitable when they quote. Indeed, Razer's CEO, Min Liang Tan, had previously warned thathe United States [public markets] are probably more aware of technology companies' than Hong Kong retail investors.