Exclusive: Alibaba Postpones Up To $ 15 Billion Hong Kong Listing amid Protests

By Julie Zhu and Greg Roumeliotis

HONG KONG / NEW YORK (Reuters) – The largest e-commerce company in China Ali Baba (NYSE 🙂 Group Holding Ltd. has delayed its listing of up to $ 15 billion in Hong Kong, due to growing political unrest in the Asian financial center, told Reuters two people aware of the situation. ;case.

The financial community is closely monitoring Alibaba's projects regarding Hong Kong listing of business environment indices in the Chinese-controlled territory and offers a window on Beijing's reading of the situation. .

Although no new timetable has been officially set, Alibaba could sign the Hong Kong agreement as early as October, seeking to raise $ 10 billion to $ 15 billion, while political tensions are mounting. will mitigate and that market conditions will become favorable again, said one of the people.

The decision to postpone the agreement, originally scheduled for late August, was taken at a meeting of the board of directors preceding the release of Alibaba's results last week, announced the second person.

This delay is due to the lack of financial and political stability in Hong Kong during more than 11 weeks of demonstrations in favor of democracy, which have become increasingly violent and have plunged the city into turmoil, the people said. .

Tear gas was used frequently by the police, while more than 700 people were arrested, followed by an unprecedented airport shutdown last week. The Hong Kong stock market fell to a seven-month low last week.

"It would not be wise to launch the agreement now or in the near future," said the first speaker. "It would certainly be embarrassing for Beijing by offering such a gift to Hong Kong, given what is happening in the city," the source added.

Both people refused to be identified because they were not allowed to talk to the media.

Alibaba declined to comment on its draft agreement with Hong Kong.

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This deal, which could be the world's largest stock transaction this year and the biggest sell-off in seven years, would give Alibaba a war chest to continue investing in technology. .

However, the company sees a way to "diversify its access to capital markets", but not as the heart of its business, said the second source. Alibaba "does not see the postponement as a blow," added the person.

Meanwhile, a listing by Alibaba is a big deal for the Hong Kong Stock Exchange, which lags behind its New York rivals in the annual battle to become the world's leading trading venue.

Last month, Anheuser-Busch InBev canceled the $ 9.8 billion IPO in Hong Kong of its Asia-Pacific unit.

The city eased its rules last year to encourage Chinese tech giants listed overseas to move closer to home.

Alibaba would be the first to test the new system.

Asked last week about the impact of the crisis in Hong Kong on the list of Alibaba, the CEO of the Hong Kong Stock Exchange, Charles Li, avoided recognizing his candidacy, which remains technically confidential.

But Li added, "I'm convinced that such companies will eventually find a home here, because it's at home and I think they'll come in. I do not know when."