Alibaba Group Holding Ltd. has confidentially filed to be listed on the Hong Kong exchange, which could potentially be the city’s biggest share sale since 2010.
In light of US-China trade war, the second share sale will strengthen Alibaba’s ties with China along with raising money.
Alibaba raised $25 billion when it listed on the New York Exchange, in the world’s largest initial public offering. This came after the Hong Kong exchange did not approve Alibaba’s unique structure.
In the Hong Kong offering, the company will seek to preserve its existing governance system, where a partnership of top executives has rights including the ability to nominate a majority of board members. Under new rules for secondary listings introduced by the Hong Kong bourse last year, the company can apply for an exemption to standard restrictions in the city that would bar that kind of setup.Bloomberg
The current filing is kept very confidential. We are yet to hear if plans go in favour of Alibaba, or will its structure pose another problem, especially given the current tensions between Hong Kong and Beijing.