According to the informed sources of the Wall Street Journal, the Chinese corporation Alibaba Group has decided to postpone the planned IPO. The riots in Hong Kong, which have lasted for more than 11 weeks, resulted in such a decision.
Initially, the IPO, which could attract about 15 billion dollars, was planned for the end of the current month. But the management of the Chinese giant decided to postpone the initial offering due to instability in Hong Kong and the difficult market situation.
If the situation becomes more favorable, then the company would like to carry out the placement of securities this year. For obvious reasons, the specific dates are not made public. If the situation improves, mid-October is the closest likely date for the IPO.
We recall that the riots in Hong Kong began after the authorities had planned to implement a law on the extradition of citizens to China. Then, the protesters demanded reforms and the resignation of Carrie Lam. Hong Kongers also want the investigation into the police actions against protesters. Protests are accompanied by attacks on police stations, blocking motorways and railways. The local airport could not work for several days. The airport authority had to seek a legislative ban on holding rallies on its territory.
The news about Alibaba’s intention to hold an IPO in Hong Kong appeared at the end of June. The company’s previous IPO, which took place in New York in 2014, became the largest in the history of the American stock exchange. Then the company managed to attract 25 billion US dollars. Over the past 12 months, the company’s securities fell in price by a quarter on the New York Stock Exchange.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group