Alibaba To Apply For Primary Listing In Hong Kong; Stock Up

Shares of Alibaba Group Holding Ltd. (BABA) were gaining around 6 percent in Hong Kong trading after the Chinese e-commerce giant said it will apply for a primary listing in Hong Kong.

In a statement, the company said it will become dual-primary listed on the New York Stock Exchange and Hong Kong Stock Exchange upon completion. The primary listing process is expected to complete prior to the end of 2022.

Alibaba currently maintains a secondary listing on the Main Board of Hong Kong Stock Exchange.

The move reportedly follows a rule change that allows high-tech Chinese companies with dual class shares to seek dual primary listings in Hong Kong.

With the company's substantial presence in Greater China, Alibaba expects that a dual-primary listing status would foster a wider and more diversified investor base to share in Alibaba's growth and future, especially from China and other markets in Asia

The company said its ADSs listed in the U. S. and the shares listed in Hong Kong are fungible. Investors can continue to choose to hold their shares in the form of ADSs or ordinary shares.

Alibaba Group Chairman and Chief Executive Officer Daniel Zhang, said, "Hong Kong and New York are both major global financial centers, with shared characteristics of openness and diversity. Hong Kong is also the launch pad for Alibaba's globalization strategy, and we are fully confident in China's economy and future."

In Hong Kong, Alibaba shares were trading at HK$105.20, up 5.62 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Nestle Purina PetCare Co. has recalled a limited amount of certain prescription wet dog food citing labeling error, the U.S. Food and Drug Administration said. The recall involves Purina Pro Plan Veterinary Diets EN Gastroenteric Low Fat or PPVD EN Low Fat wet dog food that comes in 13.4 oz cans. Exportadora Copramar is recalling 1260 cases of James Farm frozen raspberries citing potential to be contaminated with Hepatitis A, the U.S. Food and Drug Administration said. The recall involves James Farm branded frozen raspberries identified by UPC Code: 76069501010 and Lot Code - 22-165. American Honda Motor Co, Inc. has recalled about 2,900 units of 2022 model year Honda TRX90X All-Terrain Vehicles (ATVs) sold in the United States for possible crash and injury hazard, according to a statement issued by the U.S. Consumer Product Safety Commission or CPSC.
Follow RTT