Finance

Alibaba’s Massive $15 Billion Listing in Hong Kong Postponed

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It is a well-known fact that some of the biggest companies in China almost always have their initial public offerings in the United States and that was the case with Alibaba when it had its mega IPO in New York around half a decade ago. The biggest e-commerce company in China has grown at a blinding speed over the past decade and earlier this year, Alibaba announced that it was going to have a listing at the Hong Kong stock exchange as well. The listing in Hong Kong was supposed to be worth a massive $15 billion and would have given people in China the opportunity to participate in the growth of Alibaba. However, the situation in Hong Kong has become extremely volatile due to the political protests by citizens against the Chinese regime and hence, Alibaba has decided to postpone the listing at this point. Two sources who are close to the developments told a leading news agency about the company’s decision with regards to the matter.

Hong Kong is one of Asia’s biggest financial hubs and the postponement of the listing is not going to be a good thing for the Chinese government. At this point, the entire financial community was watching the developments in Hong Kong closely and was particularly keen with regards to the Alibaba listing. The company has not yet provided any information regarding the date on which it is going to have its listing. However, sources claim that the listing could take place in October this year since many believe that the political situation could be brought under control by that time.

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The company seeks to raise $10 billion to $15 billion in its Hong Kong listing and a source has revealed that the launch of such a big listing would have proven to be a big boost to the Asian city. In such a turbulent situation, such a move would not have been welcomed by the political leadership in China. A source stated,

It would be very unwise to launch the deal now or anytime soon. It would certainly annoy Beijing by offering Hong Kong such a big gift given what’s going on in the city.

It was supposed to be the biggest deal of the year for Hong Kong, but now it seems to have been delayed indefinitely.

Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.

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