Alibaba Group Holding Ltd. has issued a press release, which gives answers to many questions related to the upcoming SPO. So, it became known that about 12.5 million shares will be offered to retail investors. The price of each share is $ 24.
The lion’s share of securities will be offered to institutional investors. It is about 97.5% of securities or 487.5 million shares. The price of the remaining stake has not yet been determined, but perhaps it will be slightly higher than $ 24 per share.
In total, the Chinese company expects to attract about 12 billion US dollars during the SPO on the Hong Kong Stock Exchange.
If demand is very high, Alibaba’s management does not rule out the possibility of offering additional 50 million shares for retail and 75 million for institutional investors.
The proceeds from the SPO are going to be invested in technology development and business scaling.
Five years ago, Alibaba raised $ 25 billion in the IPO, which became the largest initial public offering in the world history.
Since the beginning of 2019, the company’s shares have risen in price by 33%, the growth will continue thanks to positive news.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group