Alibaba shareholders agreed to split the stocks, which could\nboost the company\u2019s shares before the Hong Kong IPO. Shareholders voted for a\none-to-eight stock split of at the company’s annual general meeting. Splitting\nthe stocks will lead to an increase in the number of shares at a lower price,\nAlibaba said, adding that this could help “capital raising\nactivities” in the future.<\/p>\n\n\n\n
The e-commerce giant is planning an initial public offering\non the Hong Kong Stock Exchange. The company’s shares are already listed on the\nNew York Stock Exchange.<\/p>\n\n\n\n
Alibaba shareholders voted overwhelmingly in favor of a\nstock split that the e-commerce giant said could help further capital raising\nactivities. The stock split, which should come into force before July 15, 2020,\nwill split one ordinary share into eight. This means that the current number of\nordinary shares – of 4 billion shares – will rise to 32 billion shares. The\nvote was held at the annual general meeting of Alibaba late on Monday.<\/p>\n\n\n\n
This comes at a time when Alibaba is looking at a public\noffering (IPO) in Hong Kong that could raise up to $20 billion. In a proposal\nto divide shares issued last month, Alibaba said the move would boost the\nnumber of shares at a lower price, but more importantly, it would “increase\nflexibility in the Company\u2019s capital raising activities, including the issuance\nof new shares”. This appears to indicate a possible secondary listing in\nHong Kong. Alibaba has already been listed on the New York Stock Exchange after\nit presented its IPO in 2014. But the technology giant declined to comment on\nreports that the Hong Kong stock exchange was listed.<\/p>\n\n\n\n
Alibaba may consider offering shares soon on the grounds\nthat the company does not get “favorable multiples” in New York, and\nthat the trade conflict between the United States and China could lead to\n“scrutiny” on the American listing. The stock split appears to be a\nstep towards getting that listing in Hong Kong, as Hong Kong lifted\nrestrictions that initially encouraged Alibaba to get listed in New York.<\/p>\n\n\n\n
When it became first listed in 2014, Alibaba chose the New\nYork Stock Exchange over the Hong Kong one because Hong Kong\u2019s rules would not\naccommodate the company’s dual-class structure – which allows for weighted\nvoting rights and gives the company’s founders and insiders more control. Hong\nKong stock exchanges and the company that has been managing the exchange\nrecently changed the rules and regulations, paving the way for Alibaba\u2019s\nlisting.<\/p>\n\n\n\n
There are several reasons why the company wants to implement\nthe stock split, the most important being to increase the number of shares in\nthe hope of attracting new investors. Another reason is to cut the price of\neach share as the company feels the prices have become very high. When Alibaba\nlisted its shares for an IPO in the United States in 2014, its share price was\n$68. On Monday, Alibaba closed just above $173.<\/p>\n\n\n\n
Alibaba does not necessarily need more cash, but analysts\nsaid it could provide it with a boost that may help the company invest in new\nareas. As for listing, the company is obviously very rich, but that gives them\na presence in the region from the standpoint of listings and provides them plenty\nof capital that hey can use well.<\/p>\n","protected":false},"excerpt":{"rendered":"
Alibaba shareholders agreed to split the stocks, which could boost the company\u2019s shares before the Hong Kong IPO. Shareholders voted for a one-to-eight stock split of at the company’s annual general meeting. Splitting the stocks […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,4],"tags":[116,66,79,36,34,114,120,10,58,57,70,47,86,102,80,119,135,23,46,109,121,39,106,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1299"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1299"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1299\/revisions"}],"predecessor-version":[{"id":1301,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1299\/revisions\/1301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1300"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}