Reports confirm that e-commerce giant Alibaba Group Holdings is considering a second listing in Hong Kong to raise $20 billion. The largest company in China is presently working with financial advisors to provide the second listing in the latter half of 2019.
Sources familiar with the matter mentioned that the company’s main aim of the second listing would be to diversify its funding channels and reinforce liquidity, especially as Chinese companies face consistent criticism from the Trump administration.
Apparently, the second listing would come just a few years after the company had secured $25 billion on the New York Stock Exchange in 2014. Alibaba’s success in China is similar to Amazon’s success in United States – the Chinese company is now valued at about $400 billion, with its stock rising 13% in 2019.
As per sources familiar with the knowledge of the matter, experts are also speculating such a decision to perhaps be the result of the ongoing trade war between China and the United States which makes it more tough for Chinese tech companies to export or import goods from the United States. However, it has also been claimed that the decision comes along the heels of the changes in the regulatory framework in Hong Kong, which would now enable the retail company to conduct trade operations in the region.
Seemingly, the capital generated from the new IPO would allow Alibaba to continue its investments to improve its portfolio and expand its already massive offerings. The Chinese giant is extensively expanding in the cloud computing market and along with this, creating its own chain of brick-and-mortar supermarkets.
Sources added that Alibaba is the only Asian company after Tencent to attain $500 billion in evaluation and is one of the world’s largest artificial intelligence and internet companies. In addition, the company is touted to be one of the greatest venture capital firms globally.
The Chinese company, so far, has not provided any comments on the speculated discussions.