Business

Alibaba’s HK shares close first trading day 6.6% higher

HONG KONG : Alibaba Group's Hong Kong shares closed their first trading session up more than 6 per cent from the issue price after this year's largest stock sale.

Shares worth HK$13.99 billion (S$2.44 billion) were traded, according to Refinitiv data, making it the third biggest debut on record for the Hong Kong market.

Alibaba is already the fifth most-traded company in New York this year, averaging US$2.6 billion (S$3.6 billion) a day, Refinitiv data showed.

The Chinese e-commerce giant has raised at least US$11.3 billion from its secondary listing, which has been seen as a vote of confidence in Hong Kong's financial future despite six months of violent anti-government protests.

The figure could climb to as much as US$12.9 billion if Alibaba chooses to exercise an over-allotment option within 30 days of the start of trade.

Alibaba shares closed at HK$187.60 which was 6.6 per cent higher than the issue price of HK$176 a share.

On Monday, its US American Depository Shares (ADS) closed at US$190.45. With eight Hong Kong shares for every ADS, that implied a price of HK$186.30 a share.

Alibaba's debut ranks third in the city for first-day turnover behind insurer AIA Group in 2010 which recorded HK$49.38 billion in turnover, and China Literature with HK$14.17 billion when it debuted in November 2017.

The funds raised from the Hong Kong listing will help Alibaba invest more in a range of online services.- REUTERS

BUSINESS & FINANCE